A friendly acquisition:
A)raises the price that has to be paid for a firm
B)ensures that the top management of the acquired firm will be welcome in the newly combined firm
C)facilitates the integration of the acquired and acquiring firms
D)allows joint ventures to be developed

Question

Quizplus · Accepted Answer

A friendly acquisition is a situation where the management of the target firm welcomes and agrees to be acquired by the acquiring firm. This cooperation between the two firms facilitates the integration process, making it smoother and less disruptive to ongoing business operations. Thus, option C is the correct choice. Option A doesn't apply since a friendly acquisition means that the target firm has agreed to be bought out, so there is no need to raise the price. Option B is also not necessarily true since it depends on the terms of the acquisition agreement. Option D may or may not be true – it is not directly related to a friendly acquisition.

A Friendly Acquisition