The Types of Companies That Make Particularly Attractive Acquisition Targets

question 18

Multiple Choice

The types of companies that make particularly attractive acquisition targets when employing an unrelated diversification strategy are

• A)cash cow businesses that provide excellent financial fit.
• B)companies that are market leaders in their respective industries.
• C)financially distressed companies with good turnaround potential,undervalued companies that can be acquired at a bargain price,and companies that have bright growth prospects but are short on investment capital.
• D)companies that offer the greatest potential to reduce labor costs.
• E)companies that employ the same basic type of competitive strategy as the parent corporation's existing businesses.

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Definitions:

Dwight Eisenhower

The 34th President of the United States, serving from 1953 to 1961, known for his leadership during World War II as a five-star general.

Domestic Disorder

A state of disturbance in the internal affairs of a country typically involving violence or public disorder.

Cabinet

A group of senior government officials, typically heads of departments or agencies, who advise the head of state or head of government.

Federal Government

The national government of a federal country, which shares power with state or provincial governments according to the constitution.