Which of the Following Is True Regarding M&As

question 45

Short Answer

Which of the following is true regarding M&As?
a. As many as 70 percent of M&As reportedly fail.
b. On average, the acquiring firms' performance improves after acquisitions.
c. Target firms, after being acquired and becoming internal units, often perform better than when they were independent, stand-alone firms.
d. The only identifiable losers are the shareholders of target acquired) firms.
e. The outstanding success of M&As is due to pre- and post acquisition phases.

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Definitions:

Human Resource Management

The strategic approach to the effective management of people in a company or organization in a way that helps their business gain a competitive advantage.

Sales Discounts

Sales discounts are reductions in price offered to customers, typically to encourage prompt payment or bulk purchases.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Perpetual Inventory System

An accounting methodology that records goods transactions immediately through the use of electronic systems, continuously updating inventory records.