If a multinational company's motive for the acquisition may have been to enhance executive powers and prestige rather than to improve shareholder return, this can lead to
A)divestiture.
B)cost savings.
C)expansion.
D)acquisition.

Question

Quizplus · Accepted Answer

Research shows that a majority of acquisitions of public corporations result in value destruction rather than value creation. Top executives may not have acted in the best interests of shareholders. That is, the motive for the acquisition may have been to enhance executive powers and prestige rather than to improve shareholder returns.

If a Multinational Company's Motive for the Acquisition May Have