When Contemplating FDI, Why Do Firms Apparently Prefer to Acquire

question 102

Multiple Choice

When contemplating FDI, why do firms apparently prefer to acquire existing assets rather than undertake greenfield investments?

• A) Greenfield investments are characterized by reduced management control.
• B) Mergers and acquisitions are preferred because most greenfield investments fail.
• C) It is easier and less risky for a firm to build strategic assets than acquire similar assets.
• D) Mergers and acquisitions are quicker to execute than greenfield investments.

Understand the financial strategies involving options and bonds, including employee stock options (ESO), warrants, and callable bonds.

Analyze the strategic investment decisions involving convertible bonds and their impact on control of the firm.

Understand the ethical considerations and implications of convertible bonds in international investments.

Learn the effects of the exercise of options, warrants, and convertible bonds on the market value of the firm's shares, the number of shares outstanding, and the earnings per share.

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Definitions:

Dietary Assessment Method

Techniques or tools used to evaluate the nutritional value of a person's diet, often through the collection and analysis of dietary intake data.

Usual Intake Form

A dietary assessment tool used to record an individual's typical food and beverage consumption over a specific period.

Food Diary

A record kept by an individual of all the food and drink they consume over a certain period, often used as a tool in nutrition counseling to assess dietary habits.

Positive Coping Talk

Encouraging or affirmative self-talk used to manage stress, challenges, or negative emotions, promoting resilience and positive mental health.