Which of the following is not a reason why firms prefer to acquire existing assets rather than undertake greenfield investments?
A)Foreign firms are acquired because those firms have valuable strategic assets.
B)Firms make acquisitions because they believe they can increase the efficiency of the acquired unit by transferring capital,technology,or management skills.
C)Even though greenfield investments are comparatively less risky for a firm,acquisitions always yield higher profits.
D)Mergers and acquisitions are quicker to execute than greenfield investments.

Question

Quizplus · Accepted Answer

The statement "Even though greenfield investments are comparatively less risky for a firm, acquisitions always yield higher profits" is not a valid reason for firms to prefer acquisitions over greenfield investments. In reality, the profitability of acquisitions versus greenfield investments can vary depending on the specific circumstances of the investment.

Which of the Following Is Not a Reason Why Firms