Which of the Following Statements Is Incorrect Regarding Acquisitions

question 12

Multiple Choice

Which of the following statements is incorrect regarding acquisitions?

• A) In an acquisition, the surviving firm is called the acquirer.
• B) An acquisition is the outright purchase of one firm by another.
• C) In most cases, a firm acquires a competitor or a company that has a product line or distinctive competency that it needs.
• D) If a firm decides to grow through acquisitions, it is extremely important for it to exercise extreme care in finding acquisition candidates.
• E) Many firms have found that the process of assimilating another company into their current operation was easier than they thought it would be.

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Definitions:

Mutual Fund

A financial vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Equity Loan

A loan where the equity in the borrower's home is used as security.

Probabilities

A measure of how likely an event is to occur, expressed as a number between 0 and 1.

Sales Narrative

A compelling story or explanation designed to sell a product or service, highlighting its benefits and aligning with the customer's needs.