Refer to the Following Figure When Answering the Following Question

question 63

Multiple Choice

Refer to the following figure when answering the following question.
Figure 11.2: Growth Rates of Investment and GDP (Source: U.S. Bureau of Economic Analysis)
-Consider Figure 11.2. How does the investment function describe why investment is more volatile than the GDP?

• A) Firms are unpredictable.
• B) Investment does not include household residential expenditures.
• C) Inventories do not adjust to changes in business cycles.
• D) Firms do not have very good information.
• E) The marginal product of capital is included in the investment function.

Identify different types of mergers and acquisitions.

Recognize the potential benefits and challenges associated with M&As.

Grasp the concept of cultural integration and its importance in M&A success.

Understand the strategic reasons for M&A failures.