In an overcapacity acquisition, the objectives include ________.
A) short cut innovation by buying it from small companies
B) synergy of similar but expanded product lines or geographic markets
C) eliminating capacity, gaining market share, and increasing efficiency
D) anticipation of new industry emerging and culling resources from firms in multiple industries whose boundaries are eroding

Question

Quizplus · Accepted Answer

In an overcapacity acquisition, the main objective is to eliminate excess capacity by acquiring a competitor and gaining market share while increasing efficiency through economies of scale. Synergy of similar product lines or geographic markets may also be a goal. Innovation and anticipation of new industries emerging are not the main goals of an overcapacity acquisition.

In an Overcapacity Acquisition, the Objectives Include ________