To Reduce the Risks of Failure of an Acquisition,managers Must

question 13

Multiple Choice

To reduce the risks of failure of an acquisition,managers must move rapidly after an acquisition to:

• A)ensure the firm does not pay too much for the acquired unit.
• B)encourage and facilitate management turnover.
• C)initiate pre-acquisition screening.
• D)put an integration plan in place.

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Definitions:

Offshoring

The relocation of a business process or operation from one country to another, typically to exploit lower labor costs or favorable regulatory environments.

Shipping Costs

Expenses associated with transporting goods from one location to another.

Raw Material Costs

Expenses associated with acquiring the unprocessed materials needed to manufacture a product. These costs are a significant component of total production cost.

Total Cost Of Offshoring

The comprehensive calculation of all expenses related to relocating business operations abroad, including setup, operational, and labor costs.