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:

California

A state located on the west coast of the United States, known for its diverse geography, including beaches, forests, and deserts, as well as being a global hub for technology and entertainment industries.

Mexican-American War

A conflict between the United States and Mexico from 1846 to 1848, resulting in the U.S. acquisition of territories that would become southwestern states.

Fugitive Slave Act

Legislation passed in 1850 requiring the return of escaped slaves to their owners, even if they were in a free state.