Which of the following is an advantage of acquisitions?
A)On average,the profits and market shares of acquired companies rose substantially following acquisition.
B)Acquisitions avoid the pitfall of the hubris hypothesis.
C)The vast majority of mergers and acquisitions achieve substantial revenue synergies.
D)It gives firms access to valuable intangible assets.

Question

Quizplus · Accepted Answer

When a firm makes an acquisition in a foreign market,it not only acquires a set of tangible assets,such as factories,logistics systems,customer service systems,and so on,but it also acquires valuable intangible assets including a local brand name and managers' knowledge of the business environment in that nation.Such knowledge can reduce the risk of mistakes caused by ignorance of the national culture.

Which of the Following Is an Advantage of Acquisitions