Freedom Energy Group (Scenario)

question 86

Multiple Choice

Freedom Energy Group (Scenario)
Freedom Energy Group (FEG) is a major American energy services group based in Oklahoma. FEG manufactures products to facilitate oil and gas exploration and is involved in the construction of oil refineries and gas pipelines around the world. FEG managers are considering the purchase of a Canadian energy firm, Maple Leaf Energy, which manufactures pipeline stabilization products. The financial management division of FEG is considering the risks and benefits of purchasing Maple Leaf.
-Which of the following should most likely be considered by financial managers before FEG purchases Maple Leaf?

• A) How will environmentalists react to the purchase of Maple Leaf by FEG?
• B) Should FEG integrate the Maple Leaf logo into the FEG marketing campaign?
• C) What is the best way for FEG to manage currency fluctuation between U.S. dollars and Canadian dollars?
• D) How will NAFTA affect the legal negotiations between FEG and Maple Leaf?

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Definitions:

Armed Robbery

A criminal act involving theft or larceny carried out by individuals wielding weapons.

Profitable

Generating financial gain or benefit, often exceeding the initial investment or cost.

Nighttime

The period of darkness between sunset and sunrise when no sunlight is visible.

Unarmed

Without weapons; a state or condition of not carrying or using any form of weapon.