Business Acquisition Strategy Quiz
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Questions and Answers

What is one of the potential risks mentioned in the text related to acquiring businesses with foreign operations or sales?

  • Ensured profitability of acquired businesses
  • Improved integration of acquired companies
  • Decreased exposure to risks in international markets
  • Increased exposure to risks inherent in doing business outside of India (correct)

    • Which factor poses a challenge to the successful integration of acquired businesses as discussed in the text?

  • Overstating the value of the acquired business (correct)
  • Achieving operational efficiency improvement
  • Minimizing liabilities associated with acquisitions
  • Ensuring business enhancement through synergies

    • What is identified as a significant risk in any future acquisition process based on the text?

  • Efficiently transitioning company cultures and facilities (correct)
  • Failing to achieve operational efficiency improvement
  • Optimizing the value chain
  • Ensuring successful LNG and hydrogen opportunities

    • What potential risk could the company face if its planned expenditure requirements exceed available resources?

    <p>Dilution of earnings per Equity Share from additional debt financing</p> Signup and view all the answers

    How might unforeseen delays in product development impact the company's capital requirements?

    <p>Lead to higher costs than estimated in capital requirements</p> Signup and view all the answers

    What consequence could the company face if it fails to secure the necessary capital for facility expansion and technology development?

    <p>Need to limit business operations and growth opportunities</p> Signup and view all the answers

    How could negative publicity impact a company's brand value and consumer trust?

    <p>Significantly reduce brand value and consumer trust</p> Signup and view all the answers

    What could be a consequence of failure to obtain additional financing for business operations?

    <p>Adversely affect the ability to grow and future profitability</p> Signup and view all the answers

    In what area was a significant amount of capital expenditure aimed at in the periods indicated?

    <p>Increasing manufacturing capacities and building export business</p> Signup and view all the answers

    How could untoward incidents like litigation or regulatory actions impact a business?

    <p>Significantly reduce brand value and consumer trust</p> Signup and view all the answers

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