One of the Factors on Which a Successful Acquisition Depends

question 42

Multiple Choice

One of the factors on which a successful acquisition depends is the ability to capture synergies. Which of the following makes this a difficult task?

• A) The acquirer tends to "overcommunicate" during the process
• B) The synergies dissipate over the time that it takes to complete the deal
• C) It is very hard to integrate the cultures of the companies involved
• D) Synergies don't want to be captured; they wish to remain free

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Definitions:

Zero Inflation

A situation where the price level of goods and services remains constant over time, indicating no inflation in an economy.

Labor Market

The marketplace in which laborers offer their skills and labor to employers in exchange for wages.

Real Interest Rates

The rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation.

Federal Open Market Committee

The branch of the Federal Reserve System that is responsible for determining the direction of monetary policy, specifically by directing open market operations.