Which of the Following Is One of the Reasons That

question 113

Multiple Choice

Which of the following is one of the reasons that acquiring firms often overpay for the assets of the acquired firm?

• A)Studies showing that,on average,the profits and market shares of acquired companies skyrocket following acquisitions.
• B)After an acquisition,many acquired companies experience high management turnover.
• C)Studies showing that the vast majority of acquisitions are judged to be very successful.
• D)The price of the target firm can get bid up if more than one firm is interested in its purchase.

---

Definitions:

Estuary

The tidal mouth of a large river, where the tide meets the stream, creating a highly productive ecosystem that supports diverse species.

Intertidal Zone

The coastal area that is exposed to air at low tide and submerged at high tide, hosting unique and adaptive marine life.

Sphagnum Moss

A genus of approximately 380 accepted species of mosses, known for their role in creating peat bogs and significantly affecting their habitat's ecosystem by retaining water.

Nutrient Cycling

The movement and exchange of organic and inorganic matter back into the production of living matter within environmental systems.