Acquiring a supplier because it becomes more profitable
A)will raise the asking price to offset any increase in cash flow over time
B)will increase your profits
C)will decrease your profits
D)will make you alter operations

Question

​Acquiring a supplier because it becomes more profitable
A)​will raise the asking price to offset any increase in cash flow over time
B)will increase your profits
C)will decrease your profits
D)​will make you alter operations

Quizplus · Accepted Answer

Acquiring a supplier can raise the asking price because the supplier will anticipate the increased profitability and potential cash flow benefits for the acquirer, leading to a higher valuation.

​Acquiring a Supplier Because It Becomes More Profitable

Acquiring a Supplier Because It Becomes More Profitable