Which of the Following Represent Potential Gains from an Acquisition

question 37

Multiple Choice

Which of the following represent potential gains from an acquisition?
I.increased use of debt
II.lower costs per unit produced
III.strategic beachhead
IV.diseconomies of scale

• A)II and III only
• B)I and IV only
• C)I, II, and III only
• D)I, III, and IV only
• E)I, II, III, and IV

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Definitions:

Sellers and Buyers

Parties involved in a transaction where goods, services, or assets are exchanged from the seller (provider) to the buyer (purchaser).

Liquidated Damages

A predetermined amount of money that must be paid as damages for failure to perform under a contract.

Identified Before Breach

A legal term referring to goods specified by the buyer and seller in a contract for sale before any default occurs.

Nominal Damages

A small amount of money awarded by a court to recognize that a legal wrong has occurred, but no substantial harm was done.