The Downsides or Limitations of Mergers and Acquisitions Include All

question 71

Multiple Choice

The downsides or limitations of mergers and acquisitions include all of the following EXCEPT:

• A) Premiums that are frequently paid to acquire a business are expensive.
• B) Difficulties exist in integrating the activities and resources of the acquired firm into on-going operations.
• C) There can be many cultural issues that can doom an otherwise promising acquisition.
• D) It is a slow means to enter new markets and acquire skills and competences.

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Definitions:

Payee

A payee is the individual or entity to whom a payment is made, typically named or designated in a financial transaction document.

Negotiation

The transfer of a negotiable instrument in such form that the transferee becomes a holder.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument to legally transfer its ownership.

Indorsee

A person to whom a draft, note, or other negotiable instrument is transferred by endorsement.