Which of the Following Is Not True About Why Firms

question 96

Multiple Choice

Which of the following is not true about why firms prefer to acquire existing assets rather than undertake greenfield investments?

• A) Foreign firms are acquired because those firms have valuable strategic assets.
• B) Firms make acquisitions because they believe they can increase the efficiency of the acquired unit by transferring capital, technology, or management skills.
• C) Firms make acquisitions because they believe it will make more profits for the home firm and home country.
• D) Mergers and acquisitions are quicker to execute than greenfield investments.
• E) Mergers and acquisitions are cheaper than greenfield investments.

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Definitions:

Stakeholder Capacity

Refers to the ability and resources of stakeholders to engage effectively in decision-making processes and actions that impact them.

Economic Responsibility

involves a business's commitment to make decisions that positively impact both its bottom line and the economy at large.

Corporate Behaviour

The actions and policies of a company as a collective entity, reflecting its values, ethics, and objectives.

Goods And Services

The items (goods) and activities (services) that are produced or provided to fulfill the needs or wants of consumers.