Firms May Find Internal Development Preferable to Acquisitions for All

question 164

Multiple Choice

Firms may find internal development preferable to acquisitions for all of the following reasons except ________.

• A) acquisitions are less expensive than internal development
• B) internal development entails incremental investment over time
• C) acquisitions are all-or-nothing propositions
• D) organizational conflict is more likely during acquisitions

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Definitions:

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period.

Debits and Credits

Accounting terms used to record changes in accounts, where debits are entries on the left side of an account and credits are entries on the right.

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accuracies in preparation for financial reporting.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones.