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

question 60

Multiple Choice

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

• A) When a firm makes an acquisition, it buys a set of assets that are producing a known revenue.
• B) Acquiring firms underpay for the assets of the acquired firm.
• C) After an acquisition, many acquired companies face a rise in recruitments.
• D) Integrating the operations of the acquired and acquiring entities often takes a short period of time.
• E) Most acquisitions succeed due to detailed pre-acquisition screening.

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Definitions:

Import Competition

The competition that domestic firms encounter from the products and services of foreign producers.

Trade Barriers

Regulations or policies implemented by countries to control the import and export of goods and services.

Import Quotas

Limits set by a government on the quantity or value of certain goods that can be imported into a country.

Domestic Producers

Companies or individuals that produce goods and services within their own country.