In terms of the factors motivating a firm entering into an M&A, which of the following is true?
A) Smaller firms are more willing to pursue an M&A because it limits their financial exposure.
B) In high-risk environments, firms are less likely to want to commit resources necessary for an M&A.
C) Managers like M&As in entering developing countries if the systematic country risk is high.
D) M&As are a good way to test a new market and to see if two firms can share technology effectively.

Question

Quizplus · Accepted Answer

In high-risk environments, firms are often hesitant to commit the significant resources required for mergers and acquisitions (M&As) due to the uncertainty and potential for loss. This makes them less likely to pursue M&As in such contexts.

In Terms of the Factors Motivating a Firm Entering into an M&A