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.

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Definitions:

Cerebellum

A part of the brain at the back of the skull in vertebrates, responsible for coordinating voluntary movements.

Hemiplegia

A condition resulting in paralysis or severe weakness on one side of the body, typically caused by brain injury or neurological disease.

Muscle Sprain

An injury to a ligament caused by overstretching or tearing, often resulting in pain, swelling, and restricted movement.

Drawsheet

A small bedsheet placed over the middle of the bottom sheet to assist in moving a patient in bed.