Merger and Acquisition Strategies

question 109

Multiple Choice

Merger and acquisition strategies

• A)are nearly always superior alternatives to forming alliances or partnerships with these same companies.
• B)may offer considerable cost-saving opportunities and can also be beneficial in helping a company try to invent a new industry.
• C)are a particularly effective way of pursuing a blue-ocean strategy and an outsourcing strategy.
• D)seldom are superior alternatives to forming alliances with these same companies because of the financial drain of using the company's cash resources to accomplish the merger or acquisition.
• E)are one of the best ways for helping a company strongly differentiate its product offering and use a differentiation strategy to strengthen its market position.

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Definitions:

Method

A systematic way of accomplishing something.

Cost-Volume-Profit Analysis

A financial analysis tool that helps determine how changes in costs and sales volume affect a company's profit.

Multiproduct Firm

A company that produces and sells more than one product or service, thereby diversifying its offerings and potentially reducing risk.

Produces and Sells

The activities involved in manufacturing goods and then selling them to customers.