Which of the Following Statements Concerning Acquisitions Are Correct

question 21

Multiple Choice

Which of the following statements concerning acquisitions are correct?
I. Being acquired by another firm is an effective method of replacing senior management.
II. The net present value of an acquisition should have no bearing on whether or not the acquisition occurs.
III. Acquisitions are often relatively complex from an accounting and tax point of view.
IV. The value of a strategic fit is easy to estimate using discounted cash flow analysis.

• A) I and III only
• B) II and IV only
• C) I and IV only
• D) I, III, and IV only
• E) I, II, III, and IV

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Definitions:

Cultural Standards

The criteria or benchmarks that define acceptable behaviors, practices, and values within a particular society or community, influencing how members of that community should act.

Role Distancing

Involves giving the impression that we are just “going through the motions” but actually lack serious commitment to a role.

Role Conflict

A situation in which incompatible demands are made upon an individual by two or more roles that they hold, leading to stress and difficulty in performing both roles effectively.

Role Strain

The stress or tension experienced by an individual when faced with incompatible demands or expectations within the same social role.