The Use of High Levels of Debt in Acquisitions Has

question 78

Multiple Choice

The use of high levels of debt in acquisitions has contributed to:

• A) the increase in above-average returns earned by acquiring firms.
• B) an increased risk of bankruptcy.
• C) the negative returns earned by both firms.
• D) an increase in investments that have long-term payoffs and reduced firm competitiveness.

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Definitions:

Physiological

Related to the functions and activities of living organisms and their parts, including all physical and chemical processes.

Small Business Leadership

The guidance and direction provided by individuals in managerial positions within small enterprises to achieve organizational goals.

Being Credible

The quality of being trustworthy or believable, often assessed based on expertise, reliability, and a track record of integrity.

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The process of creating a clear, inspirational and forward-looking statement that defines the desired long-term future of an organization or team.