Screening a potential acquisition enterprise can do all of the following EXCEPT:
A)help make sure the firm does not pay too much for the acquired unit.
B)ensure elimination of competition in the foreign market.
C)reduce the chance of uncovering any nasty surprises.
D)ensure that the firm does not acquire a firm whose culture is antagonistic to its own.

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.

Screening a Potential Acquisition Enterprise Can Do All of the Following