Many mergers that appear to make economic sense fail because managers cannot handle the complex task of integrating two firms with different
A)production processes.
B)production processes and accounting methods.
C)corporate cultures.
D)production processes, accounting methods, and corporate cultures.

Question

Quizplus · Accepted Answer

Mergers often involve integrating not just production processes and accounting methods, but also corporate cultures. Managers may struggle to navigate these differences and merge the two firms into a cohesive entity, leading to failure. Thus, the best choice is D, which includes all three factors.

Many Mergers That Appear to Make Economic Sense Fail Because