Factors destroying firm value following a merger or acquisition could include all but which of the following:
A) Poor product quality
B) Excessive wage and benefit levels
C) Low labor productivity
D) High employee turnover
E) Incremental revenue due to product cross-selling

Question

Quizplus · Accepted Answer

Incremental revenue due to product cross-selling would actually increase firm value following a merger or acquisition, so it is not a factor that would destroy it. Factors such as poor product quality, excessive wage and benefit levels, low labor productivity, and high employee turnover can all contribute to a decrease in firm value.

Factors Destroying Firm Value Following a Merger or Acquisition Could