Motivations of acquiring firms include:
A) Decreased stock price
B) Increased market share
C) Different debt/equity ratio
D) Decreased P/E ratio

Question

Quizplus · Accepted Answer

Increased market share is a common motivation of acquiring firms as it allows them to expand their customer base, increase their bargaining power with suppliers, and potentially increase profits. Decreased stock price, different debt/equity ratio, and decreased P/E ratio are not typically motivations for acquiring firms.

Motivations of Acquiring Firms Include