Why Are Acquisitions Seen as an Alternative to New Product

question 25

Essay

Why are acquisitions seen as an alternative to new product development? What impediments exist in undertaking internal product development?

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Net Profits

The amount of income that remains after subtracting all expenses, taxes, and costs from total revenue.

Shareholders

Individuals or entities that own shares in a corporation, thereby having an interest in its performance and governance.

De Jure Corporation

A corporation whose existence is the result of incorporators having fully or substantially complied with the relevant corporation statutes.