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:

Employee Recognition

The acknowledgment and appreciation of an employee's work and contributions to the organization, often used as a motivational tool.

Globalization

The process by which businesses, cultures, and societies become more interconnected and interdependent through trade, communication, and technology on a global scale.

Connectivity

Refers to the state or extent of being connected or interconnected, especially regarding telecommunications or computing devices.

Contingency Anchor

A reference or standard used to anticipate and prepare for potential future scenarios or outcomes.