The Fact That Acquisitions Impose Substantial Costs on Acquiring Firms

question 6

Multiple Choice

The fact that acquisitions impose substantial costs on acquiring firms (including both the acquisition premium and legal and advisory fees) implies that:

• A)Acquirers need to be sure that potential of the acquisition to create value exceeds the costs of incurred by the acquisition
• B)Acquisitions tend to be in the interests of managers but contrary to the interests of shareholders
• C)Small acquisitions to be preferred to large acquisitions
• D)Boards of directors should be more active in opposing acquisition proposals.

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Definitions:

Upper Egypt

The southern portion of Egypt, which stretches from Cairo to Aswan, historically known for its ancient cities and pharaonic sites.

Lotus

A plant associated with purity and beauty in various cultures, often found in water gardens and depicted in art and literature, symbolizing elegance and rebirth.

Papyrus

A plant native to Egypt and adjacent lands used to make paperlike writing material; also, the material or any writing on it.

Human Figure

The representation of the human body in art, which can range from realistic to abstract interpretations.