When viewed as a project, the international acquisition usually generates quicker and larger cash flows than the establishment of a new subsidiary, but it also requires a larger initial outlay.

Question

Quizplus · Accepted Answer

This statement is true. An international acquisition typically generates quicker and larger cash flows because it involves purchasing an established company with an existing customer base, products/services, and infrastructure. However, this also requires a larger initial investment compared to establishing a new subsidiary from scratch.

When Viewed as a Project, the International Acquisition Usually Generates