There are opportunity costs to acquisitions because managers in the acquiring firm
A) neglect other aspects of the firm's operations.
B) tend be willing to pay too much for target firms.
C) are reluctant to take the time to do the necessary due diligence.
D) are susceptible to cognitive anchoring.

Question

Quizplus · Accepted Answer

Acquisitions can divert managers' attention from other important aspects of the firm's operations, leading to opportunity costs.

There Are Opportunity Costs to Acquisitions Because Managers in the Acquiring