One of the First Steps One Should Take Before a Merger

question 4

Multiple Choice

One of the first steps one should take before a merger in order to minimize cultural clashes is to:

• A)significantly reduce the strength of the culture in both organizations.
• B)conduct a bicultural audit.
• C)significantly increase the strength of the culture in both organizations.
• D)replace the chief executives in both organizations before merger negotiations begin.
• E)conduct a bicultural audit and significantly reduce the strength of the culture in both organizations.

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Definitions:

Perpetual Inventory System

An inventory accounting method that instantly records inventory sales or purchases using computerized point-of-sale systems and enterprise asset management software.

Accounts Receivable

This refers to the money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Payee

The party in a financial transaction who receives payment.

Liquidation Value

The estimated total value of a company's assets if it were to be liquidated immediately.