Which of the Following Statements Is Incorrect Regarding Acquisitions

question 6

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) May 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:

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without the need for learning or conditioning.

Conditioned Response

A learned reaction to a previously neutral stimulus due to repeated association with an unconditioned stimulus.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without previous conditioning or learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.