Which of the following represent potential gains from an acquisition?
I.the replacement of ineffective managers
II.lower costs per unit produced
II.an increase in firm size so that diseconomies of scale are realized
IV.spreading of overhead costs

Question

Quizplus · Accepted Answer

The potential gains from an acquisition include replacing ineffective managers (I), achieving lower costs per unit produced (II), and spreading overhead costs (IV). Diseconomies of scale (III) are not a gain, as they imply increased costs with increased size.

Which of the Following Represent Potential Gains from an Acquisition