Fabulous Jewelry Inc. is considering a takeover of its competitor, Cranberry Dream Jewelry LLC. In general, Fabulous should go ahead with the acquisition as long as Cranberry is more valuable as a continued standalone company than it would be inside Fabulous.
Answer the following statement true (T) or false (F)
False
As a rule of thumb, firms should go ahead with horizontal integration (i.e., acquiring a competitor) if the target firm is more valuable inside the acquiring firm than as a continued standalone company. This implies that the net value creation of a horizontal acquisition must be positive to aid in gaining and sustaining a competitive advantage.
You might also like to view...
Purely rational arguments are identified as ______; Aristotle preferred this means of persuasion.
A. logos B. pathos C. ethos D. mythos
According to Project GLOBE, future orientation refers to the degree to which organizations or societies ________
A) expect and agree that power should be distributed unequally, favoring those at higher levels B) avoid uncertainty by relying on established norms and behaviors C) engage in behaviors such as planning and delaying individual or collective gratification D) encourage and reward group members for performance improvements and excellence
List and briefly define the privacy conditions inherent to the Safe Harbor agreement
Using the indirect method, if equipment is sold at a gain, the
A) sale proceeds received are deducted in the operating activities section. B) sale proceeds received are added in the operating activities section. C) amount of the gain is added in the operating activities section. D) amount of the gain is deducted in the operating activities section.