If a ﬁrm makes an acquisition to exploit perceived opportunities in a new industry, it is expecting ____________________ as a result of the purchase.
A) Enhanced marketing strength.
B) Strategic beneﬁts.
C) Economies of scale.
D) Tax gains.
E) Enhanced market power.

Question

Quizplus · Accepted Answer

Strategic benefits are the most likely expected result of an acquisition aimed at exploiting perceived opportunities in a new industry. The firm is seeking to gain a foothold in a new market and leverage the resources and capabilities of the acquired company to achieve its strategic goals. While enhanced marketing strength and enhanced market power may be potential benefits of the acquisition, they are not as directly linked to the goal of entering a new industry. Economies of scale and tax gains may also be possible benefits, but they are not necessarily the primary focus of the acquisition.

If a ﬁRm Makes an Acquisition to Exploit Perceived Opportunities