Which Is NOT a Common Reason for Merger Failure

question 23

Multiple Choice

Which is NOT a common reason for merger failure?

• A)customer dissatisfaction
• B)inadequate due diligence processes
• C)the lack of a compelling strategic rationale
• D)unrealistic expectations of synergy
• E)paying too much for the transaction

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Definitions:

Exchange Relationships

Interactions between individuals or groups that are based on reciprocal actions, benefiting all involved parties.

High-Exchange Relationship

A type of relationship characterized by high levels of trust, mutual respect, and reciprocal benefits, often found in organizational contexts.

Coercion

The practice of persuading someone to do something by using force or threats.

Rational Persuasion

The process of using logical arguments and factual evidence to convince someone of a point.