Why Might a Firm Acquire Another Company

question 40

Multiple Choice

Why might a firm acquire another company?

• A) Mergers guarantee future profitability.
• B) Acquisitions allow a company to enter new markets and improve competitiveness.
• C) Acquisitions are always less expensive than creating new products.
• D) Governments regulate acquisitions less than they do mergers.

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Definitions:

Ascribed Status

A social status assigned at birth or assumed involuntarily later in life, not a result of personal effort or achievement.

Professional Status

The standing or regard of a person's occupation, based on factors such as education, income, and perceived societal importance.

Involuntarily

Occurring without the individual's conscious choice, often referring to actions or reactions that are automatic or outside personal control.

Role Set

A role set is a cluster of roles attached to a single status.