Evidence Suggests That Firms Using Acquisitions as a Substitute for Internally

question 59

Multiple Choice

Evidence suggests that firms using acquisitions as a substitute for internally developed innovations

• A)are able to offset the loss of research and development competencies by competencies in other areas.
• B)extend their time-to-market for new product launches.
• C)eventually encounter performance problems.
• D)can leverage their core competencies across a broader range of products.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Liquidity

The ability to convert assets into cash.

Noncurrent Assets

Long-term assets not expected to be converted into cash within a year, such as property, plant, and equipment.

Uncollectible

Refers to debts or receivables that are deemed not recoverable and are therefore written off as a loss.