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What is true of acquisitions?Question 4Select one:a.They feature a low risk of clashing cultures.b.It is a time-consuming process.c.In many cases, firms make acquisitions to preempt their competitors.d.They give the firm a much greater ability to build the kind of subsidiary company that it wants than greenfield investments.

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What is true of acquisitions?Question 4Select one:a.They feature a low risk of clashing cultures.b.It is a time-consuming process.c.In many cases, firms make acquisitions to preempt their competitors.d.They give the firm a much greater ability to build the kind of subsidiary company that it wants than greenfield investments.

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Solution

The statement that is true of acquisitions is: "It is a time-consuming process."

Acquisitions involve a lot of steps, including identifying a suitable target, conducting due diligence, negotiating the deal, and integrating the acquired company into the existing business. This process can take a significant amount of time.

While the other options can sometimes be true, they are not always the case. For example, acquisitions can sometimes lead to a clash of cultures between the acquiring and acquired company. Also, while acquisitions can be used to preempt competitors, this is not the only or primary reason companies make acquisitions. Lastly, acquisitions do not always give the firm a greater ability to build the kind of subsidiary company that it wants than greenfield investments.

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Similar Questions

Which statement is true of acquisitions?Multiple choice question.They help preempt competitors. They create more value rather than destroy it.They are more risky compared to greenfield ventures.They cannot be easily executed.

True or false: In most cases, mergers and acquisitions create competitive advantage.

Which of the following is true of firms' acquisition and integration capabilities?Multiple choice question.Most firms are able to create shareholder value through mergers and acquisitions.Few firms are unable to create significant shareholder value through mergers and acquisitions.Some firms can consistently use mergers and acquisitions to increase their competitive advantage.

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How do acquisitions differ from mergers?Acquisitions involve two companies of equal size.In acquisitions, one company purchases another.Mergers always involve cash transactions.Acquisitions are always hostile.

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