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The Types of Companies That Make Particularly Attractive Acquisition Targets

Question 29

Multiple Choice

The types of companies that make particularly attractive acquisition targets when employing an unrelated diversification strategy are


A) cash cow businesses that provide excellent financial fit.
B) companies that are market leaders in their respective industries.
C) financially distressed companies with good turnaround potential,undervalued companies that can be acquired at a bargain price,and companies that have bright growth prospects but are short on investment capital.
D) companies that offer the greatest potential to reduce labor costs.
E) companies that employ the same basic type of competitive strategy as the parent corporation's existing businesses.

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