What Is True of Acquisitions

question 65

Multiple Choice

What is true of acquisitions?

• A) It is a time-consuming process.
• B) Managers view them as more risky than greenfield ventures.
• C) They give the firm a much greater ability to build the kind of subsidiary company that it wants.
• D) In many cases, firms make acquisitions to preempt their competitors.

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Definitions:

Townshend Duties

A series of British acts passed in 1767, imposing taxes on the American colonies for imports such as tea, glass, and paper, leading to widespread protest.

Customs Taxes

Taxes imposed by a government on goods that are imported or exported, also known as tariffs, used to control trade and raise revenue.

Mercantilism

is an economic theory and practice where government regulation of a nation's economy is used to augment state power at the expense of rival national powers, primarily through a favorable balance of trade.