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Which of the Following Can Explain Why Firms Fail to Realize

Question 2

Multiple Choice

Which of the following can explain why firms fail to realize hoped-for synergies from their diversification activities?


A) Managers have a poor understanding of how diversification activities will "fit" or be coordinated with existing businesses.
B) Managers try to complete an
C) acquisition quickly before other buyers develop an interest in the acquisition target and begin a "bidding war."
D) After making an acquisition, managers fail to integrate the new business into their firm's existing portfolio of businesses.
E) All of these
F) None of these

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