While Acquisitions Offer an Enticing Means for Entering a New

question 44

Multiple Choice

While acquisitions offer an enticing means for entering a new business,many fail to deliver on their promise,as they:

• A) require successful integration of the culture,systems,and structure of the firm into the acquiring firm,which is a costly and time-consuming process.
• B) require an in-depth understanding of the firm so as to develop potential strategic responses to the target market.
• C) indicate that the premium paid for the company was far too high for what assets the acquiring firm purchased,and therefore failed the cost-of-entry test.
• D) require managerial attention at the highest level and this cannot always be provided.
• E) All of these.

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Definitions:

Focal Person

An individual who is the center of attention or the main subject of study in a particular research or discussion.

Kindreds

Networks of relatives extended beyond the immediate family, including all individuals related by blood, marriage, or adoption.

EGO

In kinship terminology, the central person from whom the degree of each relationship is traced.

Same Relatives

Family members who are related to an individual by blood or marriage, emphasizing the repetition or commonality of familial connections.