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:

General Journal Entry

The initial recording of financial transactions in the general journal, indicating the accounts and amounts to be debited and credited.

Social Significance

The importance or meaning of something within society or a specific community, influencing norms, behaviors, and values.

Social Identity

A person's sense of who they are based on their group membership(s), including nationality, ethnicity, religious affiliation, and social class.

Sense of Stability

The feeling of consistency, security, and confidence in one's life or environment.