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Questions and Answers
Which of the following is NOT a benefit of acquisitions?
Which of the following is NOT a benefit of acquisitions?
- Acquisition of the brand recognition of the existing company
- Acquisition of goodwill the company has built up over the years
- Acquisition of a plant or physical facility with obsolete equipment (correct)
- Ability to use alternate methods to finance the purchase of the company
What is a potential benefit of acquisitions?
What is a potential benefit of acquisitions?
- Acquisition of a company with high debt
- Acquisition of the brand recognition of the existing company (correct)
- Acquisition of a plant with outdated equipment
- Acquisition of a company with poor brand reputation
Which factor is NOT beneficial when acquiring a company?
Which factor is NOT beneficial when acquiring a company?
- Acquiring a company with established goodwill
- Acquiring a company with obsolete equipment (correct)
- Acquiring a company with an efficient financing method
- Acquiring a company with a strong brand
