An Excessively Long List of Screening Criteria Used to Develop

question 39

True/False

An excessively long list of screening criteria used to develop a list of potential acquisition targets can severely limit the number of potential candidates.

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Definitions:

Supply Inelastic

A situation where the quantity supplied of a good is not significantly affected by changes in its price.

Cross Elasticity

A gauge for the reaction in the demand for one item when there's a price alteration in another item.

Cross Elasticity

The extent to which the demand for a certain good alters in response to price changes of another good.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increased demand for the other.