Which of the Following Is an Advantage of Acquisitions as a Means

question 69

Multiple Choice

Which of the following is an advantage of acquisitions as a means of entering foreign markets?

• A) Acquiring firms often underpay for the assets of the acquired firm.
• B) It enables firms to preempt their competitors.
• C) After an acquisition, many acquired companies face increased recruitments.
• D) Integrating the operations of the acquired and acquiring entities takes a very short time.
• E) Most acquisitions are successful due to adequate pre-acquisition screening.

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Definitions:

Factory Overhead Cost

Factory overhead cost encompasses all indirect costs associated with the manufacturing process, including utilities, equipment depreciation, and factory personnel salaries, not directly tied to production.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, or obsolescence.

Financial Accounting

The field of accounting focused on the preparation of financial statements for external stakeholders, such as investors, creditors, and regulatory agencies.

Employee Downtime

Periods when employees are not engaged in productive work due to various factors such as system failures or maintenance.