The Big Issue an Acquisition-Minded Firm Must Consider Is Whether

question 50

Multiple Choice

The big issue an acquisition-minded firm must consider is whether strategically:

• A) to acquire the firm at a price that is prohibitive-in other words,a price that cannot recapture the investment.
• B) to require the acquired firm's resources and management capability to sustain the on-going struggling operation.
• C) to pay a premium price for a successful local company or to buy a struggling firm at a discount price.
• D) to pay a price that builds in all the synergistic advantages to the acquired firm.
• E) to pay a very high premium price that sends a signal to the market that the new firm has arrived.

---

Definitions:

Confidence

The feeling or belief that one can rely on someone or something; firm trust and self-assurance in one's powers, abilities, or qualities.

Entrepreneurs

Individuals who innovate, create, manage, and assume the risks of a business venture in pursuit of profits and growth.

Administrators

Individuals who are responsible for managing and overseeing the operations of organizations or parts of organizations, ensuring that they function efficiently.

Risk Taking Behavior

The propensity to engage in activities that have the potential to result in significant loss or gain.