Spring,an American Firm,recently Acquired Another Company Known as Tazel Inc

question 76

Multiple Choice

Spring,an American firm,recently acquired another company known as Tazel Inc.in Indonesia.The high-level managers at Tazel Inc.quit because they could not cope with the domineering and straightforward approach of their American counterparts.This illustrates how acquisitions may fail because:

• A) managers overestimate their ability to create value from an acquisition.
• B) integration of operations between the two firms takes longer than forecasted.
• C) there is a clash between the cultures of the acquired and the acquiring firm.
• D) an acquiring firm overpays for the assets of an acquired firm.
• E) inadequate pre-acquisition screening has been done.

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Definitions:

Culturally Linguistically Diverse

Pertains to groups or individuals from varied cultural backgrounds and with different language proficiencies, highlighting the richness and complexity of a multicultural society.

At-risk

used to describe individuals or groups facing higher probabilities of negative outcomes, such as failure in school or involvement in criminal activities, due to various risk factors.

Disengaged

Family members withdraw from one another, become distant.

Multicultural Society

A society composed of a diversity of cultures, where various cultural groups live together and interact.