A software firm is interested in acquiring an app development company that is small but highly profitable. The app developer also has a widely admired management structure and much lower attrition rates than are common in the industry. Which of these problems should the software firm anticipate?
A. Because most acquisitions are profitable, there is little to worry about in this scenario.
B. A rival software firm may imitate this approach by acquiring a similar app developer.
C. The software firm may overpay for the app developer, poorly serving the software firm's shareholders.
D. The software firm may underpay for the app developer, cheating the app developer's shareholders of profit.
Answer: C
You might also like to view...
Why does interest expense decrease during the life of an installment note payable? How is the amount of interest expense computed?
What will be an ideal response?
If an individual has purpose, it includes:
a. the quality we choose to shape our lives around and being a source of energy b. being a source of energy and source of direction c. being a source of direction d. the quality we choose to shape our lives around, being a source of energy, and being a source of direction
Whoever answers the phone ____ responsible for relaying the information to the appropriate department
A) is B) are
Which of the following statements, if made by a seller who knows the statement to be untruthful, would NOT be misrepresentation of material fact resulting in a cause of action for fraud?
a. "This horse is only six years old." b. "There is no better car in the world." c. "The tires have less than 5,000 miles on them." d. "This car gets 28 miles per gallon. "