If a multinational firm is unable to understand how the acquired company's assets would fit with their own lines of business, this can lead to
A)expansion.
B)divestiture.
C)cost savings.
D)acquisition.

Question

Quizplus · Accepted Answer

Research shows that a majority of acquisitions of public corporations result in value destruction rather than value creation. Many large multinational firms have also failed to effectively integrate their acquisitions, paid too high a premium for the common stock of the company, or were unable to understand how the assets of the acquired firm would fit with their own lines of business.

If a Multinational Firm Is Unable to Understand How the Acquired