Which of the following is an advantage of acquisitions as a means of entry into foreign markets?
A) When a firm makes an acquisition, it buys a set of assets that are producing a known revenue.
B) Acquiring firms underpay for the assets of the acquired firm.
C) After an acquisition, many acquired companies face a rise in recruitments.
D) Integrating the operations of the acquired and acquiring entities often takes a short period of time.
E) Most acquisitions succeed due to detailed pre-acquisition screening.

Question

Quizplus · Accepted Answer

Acquisitions provide a known revenue stream and existing assets, which can reduce the uncertainty and time required to establish a new operation in a foreign market.

Which of the Following Is an Advantage of Acquisitions as a Means