The Two Primary Steps Involved in Finding an Appropriate Acquisition

question 19

Multiple Choice

The two primary steps involved in finding an appropriate acquisition candidate are (1) Make a "short list" of appropriate acquisition candidates and (2) ________.

• A) carefully screen each candidate to determine its suitability for acquisition
• B) interview the CEO of each candidate to determine his/her openness to an acquisition
• C) determine if acquiring each candidate is financially feasible
• D) meet with each candidate's top management team to discern if they are compatible with your top management team
• E) hire a consulting firm to determine the best acquisition candidate

---

Definitions:

Purchasing Power Parity

A theory that compares different currencies through a "basket of goods" approach, aiming to evaluate the relative value of currencies.

Exchange Rates

The rate at which one currency can be exchanged for another currency, affecting international trade and economic transactions.

Inflation Rates

How quickly the broad price level of goods and services escalates, lessening consumer purchasing capability.

Currency Speculators

Individuals or entities that buy and sell currencies with the aim of profiting from changes in exchange rates.