An Important Reason for Acquisitions Is That the Combined Firm

question 5

Multiple Choice

An important reason for acquisitions is that the combined firm may generate greater revenue that the two separate firms could. Examples of revenue enhancement would not include:

• A) an elimination of a previously ineffective media effort.
• B) an elimination of a previously ineffective advertising effort.
• C) an elimination of a weak existing distribution effort.
• D) economies of scale.

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Definitions:

Membrane Repolarization

The process of restoring the membrane potential of a cell to its resting state after depolarization.

Neurons

The basic working unit of the brain, a specialized cell designed to transmit information to other nerve cells, muscle, or gland cells.

Isotonic Saline

A solution of sodium chloride (salt) in water at a concentration that matches the salt concentration of the body cells and blood, commonly used for medical hydration and wound cleaning.

Extracellular Fluid

The body fluid outside cells, providing a medium for substances to pass between cells and blood vessels.