Why Do Acquisitions Fail Sometimes

question 72

Multiple Choice

Why do acquisitions fail sometimes?

• A)There is a clash between the cultures of the acquiring and acquired firm.
• B)Acquisitions take a long time to execute.
• C)Acquisitions are easily preempted by making greenfield investments.
• D)The revenue and profit stream generated by an acquisition's resources is usually unknown.
• E)Losses produced by intangible assets outweigh profits from acquired tangible assets.

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Definitions:

Endocardium

The innermost layer of tissue that lines the chambers of the heart.

Chambers

Spaces within an organ or a device; in the context of the heart, refers to the four cavities (two atria and two ventricles) responsible for pumping blood.

Pericardium

The double-layered sac containing the heart and the roots of the great vessels, providing protection and support to the heart.

Epicardium

The outermost layer of the heart's wall, part of the heart's protective covering and involved in the production of pericardial fluid.