The Shareholders in the Acquiring Firm May Not Realize Any

question 33

Multiple Choice

The shareholders in the acquiring firm may not realize any significant gains from an acquisition. Which one of the following has not been suggested as a reason for this lack of gain?

• A) Management may have priorities other than the interests of the stockholders.
• B) The price paid for the target firm might equal the target firm's total value to the acquirer.
• C) Any synergy produced was paid to the target firm's shareholders.
• D) Target firm shares were exchanged for an equal value of acquiring firm shares.
• E) Anticipated merger gains may not be fully achieved.

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Definitions:

Attributes

Characteristics or features of a product or service that can include quality, functions, design, and brand that influence consumer decisions.

Closing Stage

The final step in the sales process where the salesperson ensures that all of the customer's questions have been answered and seeks to complete the sale.

Selling Process

A series of steps taken by a salesperson to identify prospective buyers, communicate benefits, and close a sale.

Types Of Close

Various strategies or techniques used in sales to persuade a customer to make a purchase.