Which of the Following Is Not a Reason for Merger

question 55

Multiple Choice

Which of the following is not a reason for merger and acquisition failures?

• A)The acquiring company pays a premium for the common stock of the target company.
• B)Top executives act in their best interests rather than those of the shareholders.
• C)The acquired company assets are poorly integrated into the acquiring company business lines.
• D)The acquisition leads to value creation.

---

Definitions:

Bureaucratic Organizations

Organizations characterized by a hierarchical structure, formal rules, and clear division of labor, often leading to efficient but potentially inflexible operations.

Basic Operating Rules

The foundational guidelines or procedures established for the operation of an organization, system, or machine.

Limited Input

A situation where decisions are made with incomplete, insufficient, or restricted information or participation from relevant stakeholders.

Variation

The range of differences within a dataset or population, or the act of changing something to make it different from others or from what it is normally.