Explain the Five Factors That Can Affect the Attractiveness of Acquisitions

question 86

Essay

Explain the five factors that can affect the attractiveness of acquisitions as strategy vehicles.

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Definitions:

Normal Good

A good for which demand increases as the income of the consumer increases, holding all else constant.

Production Capacity

The maximum output that a business can produce in a given period under normal conditions.

Supply

The total amount of a product or service that is available to consumers in the market.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantified as the percentage change in quantity demanded divided by the percentage change in price.