The Purpose of A(n) ________ Acquisition Is to Reduce the Number

question 117

Multiple Choice

The purpose of a(n) ________ acquisition is to reduce the number of competitors in a mature industry in which capacity exceeds decreasing demand.

• A) vertical
• B) overcapacity
• C) geographic roll-up
• D) market-expansion

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Definitions:

Chief Financial Officer

The senior executive responsible for managing the financial actions of a company, including financial planning, management of financial risks, and financial reporting.

NPV

A financial metric used to assess the profitability of an investment by calculating the present value of expected future cash flows.

Static DCF Analysis

A method of valuing a project or investment by estimating future cash flows and discounting them to present value using a fixed discount rate.

Option to Abandon

A clause in an investment contract granting the investor the right to withdraw from the project under certain conditions, typically to minimize losses.