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WRSX Is Considering Acquiring an Advertising Agency on the West

Question 4

Multiple Choice

WRSX is considering acquiring an advertising agency on the west coast of the USA. Which TWO of the following statements about this potential acquisition are true?


A) Access to new knowledge or skills is a primary objective for acquiring 'Mind2Mind' - a specialist agency, successful in promoting high tech brands.
B) WRSX should have increased their offer for Gumtree to match the higher offer of a rival since the value placed on the company following due diligence was an under-estimate.
C) The advantage of acquiring a west coast agency is that better service levels can be provided by a local supplier to west coast businesses rather than serving clients from the New York office.
D) Setting up a wholly owned subsidiary on the west coast from scratch is a preferable option to making an acquisition because it is cheaper and WRSX has the required skills.

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