A Disadvantage of Acquisitions Is _____

question 1

Multiple Choice

A disadvantage of acquisitions is _____.

• A) the inability to add new capacity to industry 
• B) the inability to coordinate globally 
• C) high development costs 
• D) the slow entry speed

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable production costs have been deducted, contributing to covering fixed costs.

Controllable Margin

The portion of operating income that can be directly controlled or influenced by managers at certain levels of an organization.

Operating Assets

Assets directly involved in the manufacturing or sale of products or services in the normal course of business.

Return on Investment

A measure of the profitability of an investment, calculated as the net profit of the investment divided by the initial cost.