With respect to the motives for acquisition,_____ motives add value.
A) collusive
B) hubristic
C) managerial
D) synergistic

Question

With respect to the motives for acquisition,_____ motives add value.
A) collusive 
B) hubristic 
C) managerial 
D) synergistic

Quizplus · Accepted Answer

Synergistic motives refer to the purpose of achieving cost savings, increased market share, and other benefits from combining the resources and capabilities of the acquirer and target company. This type of motive usually adds value to the acquiring company. Collusive motives involve cooperation between firms to reduce competition, hubristic motives are driven by overconfidence and ego, and managerial motives refer to a desire to grow the company or diversify the business, but these may not necessarily add value.

With Respect to the Motives for Acquisition,_____ Motives Add Value