A Major Problem with Buying Other Companies in Order to Gain

question 82

True/False

A major problem with buying other companies in order to gain access to their product lines is that the acquiring firm may lose its own ability to innovate.

---

Definitions:

Contract Actions

Legal steps taken to enforce, modify, or terminate agreements between parties based on the terms of the contract.

Punitive Damages

Financial compensation awarded in a lawsuit intended to punish the defendant for egregious or malicious behavior, and deter similar conduct in the future.

Merchants

Individuals or businesses engaged in the trade of goods, services, or commodities for profit.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract.