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Acquisitions
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Acquisitions

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Questions and Answers

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?

  • 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  • Acquisition of a plant with outdated equipment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?

  • 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

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