A Primary Reason Why Mergers and Acquisitions Sometimes Fail Is

question 75

Multiple Choice

A primary reason why mergers and acquisitions sometimes fail is due to the

• A)misinterpretation of the cultural differences, like employee disenchantment and low morale, differences in management styles and operating procedures, and operations integration decision mistakes.
• B)execution of functional and integration activity, while sustaining and capitalizing on the combined sources of revenue.
• C)development of effective integration plans conducive to employee satisfaction.
• D)advertising message detailing the merger announcement.
• E)creation of management-employee programs in order to foster better communication.

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Definitions:

Solvency

The ability of an entity to meet its long-term financial obligations and continue operations into the foreseeable future.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes by interest expenses.

Acid-Test Ratio

A financial metric that assesses a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes a company to collect payments after a sale has been made.