Which of the Following Is NOT a Reason That Acquisitions

question 73

Multiple Choice

Which of the following is NOT a reason that acquisitions fail?

• A)Clash between the cultures of the acquiring and acquired firm
• B)Inadequate pre-acquisition screening
• C)Acquisitions are slow to execute and could be preempted by a greenfield investment
• D)Integration of operations of both companies takes time

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Definitions:

Prepaid Expense

Expenditures paid for in advance for goods or services to be received in the future, often including insurance premiums or rent.

Accounts Payable

Obligations or debts a company owes to its suppliers or vendors for products or services received.

Direct Method

A costing methodology that directly assigns specific costs to relevant objects without using allocation for indirect costs.

Cost Of Goods Sold

Costs directly related to the goods a company sells, covering both the materials' cost and the labor cost involved in making the product.