Screening of the foreign enterprise to be acquired,including a detailed auditing of operations,financial position,and management culture,can help to:
A)encourage management turnover in the first year after acquisition.
B)preempt competitors.
C)uncover nasty surprises after an acquisition.
D)reduce the risk of failure of an acquisition.

Question

Quizplus · Accepted Answer

Screening of the foreign enterprise to be acquired,including a detailed auditing of operations,financial position,and management culture,can help to make sure the firm (1)does not pay too much for the acquired unit, (2)does not uncover any nasty surprises after the acquisition,and (3)acquires a firm whose organization culture is not antagonistic to that of the acquiring enterprise,thus reducing risk of failure.

Screening of the Foreign Enterprise to Be Acquired,including a Detailed