Why Do Mergers and Acquisitions Sometimes Fail to Produce Anticipated

question 31

Multiple Choice

Why do mergers and acquisitions sometimes fail to produce anticipated results?

• A) They do not produce the hoped for outcomes and changes to existing operations may not eventuate.
• B) Cost savings may prove smaller than expected.
• C) Gains in competitive capabilities may take substantially longer or never materialize.
• D) Efforts to mesh corporate cultures can stall due to formidable resistance from organization members and key employees can become disenchanted and leave.
• E) All of these.

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Definitions:

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period of time.

Fiscal Period

A specified period of time used for financial reporting and budgeting, typically a year, quarter, or month.

Biweekly Salaries

Payments made to employees every two weeks, totaling 26 payments throughout the year.

Unearned Revenue

Money received by a company for a product or service that has yet to be delivered or performed.