Company experience and research findings have shown acquisitions to be:
A) very effective,resulting in the earning of above-average returns.
B) marginally effective,providing some above-average returns.
C) ineffective,resulting in returns near zero for the acquiring firm.
D) equivalent in performance results when compared to other strategies.

Question

Quizplus · Accepted Answer

Company experience and research findings have shown that acquisitions are generally ineffective for the acquiring firm, resulting in returns near zero. Although there may be some cases where acquisitions are successful, the majority of them do not meet expectations and can even lead to financial loss for the acquiring company.

Company Experience and Research Findings Have Shown Acquisitions to Be