Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) Acquisitions are preferable to joint ventures when the new business is unrelated to the existing business.
• B) Acquisitions are preferable to new ventures when speed is important.
• C) Joint ventures are generally preferable to acquisitions when entry barriers are high.
• D) Acquisitions can be both a reason for corporate decline and part of a turnaround strategy.
• E) New ventures are preferable to acquisitions in the embryonic stage of the industry life cycle.

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Definitions:

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Income Allocation

The process of distributing a company's earnings or an investment's returns among various stakeholders or investment accounts.

Remainder Portion

The part of an estate that remains after all debts, taxes, expenses, and specific bequests have been paid or distributed, often transferred to the remainderman as specified in a will or trust.

Capital Contributions

Value or assets provided to a company by its owners or shareholders to support the business and its operations.