Why Are M as and Alliances Often Undertaken in Isolation

question 8

Multiple Choice

Why are M As and alliances often undertaken in isolation?

• A) Firms combined mergers, acquisitions, and alliance departments are often poorly managed
• B) M As let a firm stay focused on its own needs while alliances require a great deal of investment in the other company.
• C) In many firms, an M A group reports to CFO while a separate unit deals with alliances.
• D) An alliance usually satisfies shareholders of both organizations, precluding an acquisition

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Definitions:

Discount Period

A set time frame during which a discount is offered on payments made for goods or services.

Accounts Receivable

Due payments from customers to a firm for products or services that have been delivered but not settled.

Sales Discounts

Reductions in the selling price offered to customers, often as an incentive to either pay early or promote sales volume.

Freight

The charge paid for the transport of goods by sea, air, or land, typically from the supplier to the receiver, influencing the cost of goods sold and inventory valuations.