Which of the following is the probable consequence of a company's inability to integrate two divergent corporate cultures after an acquisition?
A) Low management turnover
B) Poor commercialization of the product
C) An inability to realize potential gains from synergies
D) The stock of highly diversified companies is valued lower
E) Risks are shared by all

Question

Quizplus · Accepted Answer

Inability to integrate corporate cultures after an acquisition will most likely result in an inability to realize potential gains from synergies. Synergies can only be achieved when the two companies harmoniously operate as one. Failure to integrate the cultures of both companies will result in missed opportunities for cost savings and increased revenues.

Which of the Following Is the Probable Consequence of a Company's