Which of the Following Is a Drawback of Business Acquisition

question 33

Multiple Choice

Which of the following is a drawback of business acquisition?

• A) Reputation
• B) Proven market
• C) Existing customer base
• D) Considerable investment

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Definitions:

Shareholders

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

Dissenters' Rights

Legal provisions that allow shareholders to demand the corporation buy back their shares at a fair value if they do not agree with certain fundamental changes.

Short-form Mergers

A type of merger in which a parent company merges with its subsidiary where the parent already owns most of the subsidiary's shares, simplifying the process.

Voting Power

The rights of shareholders or members to vote on corporate or organizational matters.