If a fiRm Makes an Acquisition to Exploit Perceived Opportunities

question 293

Multiple Choice

If a firm makes an acquisition to exploit perceived opportunities in a new industry, it is expecting ____________________ as a result of the purchase.

• A) Enhanced marketing strength.
• B) Strategic benefits.
• C) Economies of scale.
• D) Tax gains.
• E) Enhanced market power.

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Definitions:

Implied Warranties

Warranties not explicitly stated but are assumed in transactions, ensuring goods or services meet reasonable expectations of performance.

Due-on-sale Warranties

Clauses in a mortgage agreement that require the full loan balance to be repaid if the property is sold.

Express Warranties

Explicit guarantees made by a seller about the quality, safety, or performance of a product or service.

Certain Circumstances

Refers to specific conditions or factors that affect or determine the outcome or application of a rule in a particular case.