Why do firms make acquisitions? Provide an example of how a successful acquisition increased or protected shareholder value.
What will be an ideal response?
Student examples will vary. A sample answer follows.
Firms make acquisitions for two main reasons:
To gain access to a new capability or competency
To preempt rivals
Large existing firms often engage in serial acquisitions to maintain a window on the latest technology developments. These companies acquire small startups to not only gain access to a new capability or competency, but also to preempt rivals from doing so.
An example of a successful acquisition is Alphabet's takeover of Waze. Having access to Waze's technology has helped Alphabet to maintain its dominance in online maps. The acquisition also prevented Alphabet's competitors from accessing the Waze technology.
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Which of the following is a disadvantage of audit services (Table 4.3 in the text)?
A) interviewer errors; respondent errors B) data is lacking in terms of content, quantity, and quality C) data may not be representative; quality of data limited D) coverage may be incomplete; matching of data on the competitive activity may be difficult
When developing a social media strategy, what is the first issue that needs to be determined?
A) What are the goals when using social media? B) What is the cost of developing social media sites? C) What type of social media strategy should be in place? D) How will employees interact with social media? E) What social media sites should be utilized?
A production process produces 3% defective parts. A sample of five parts from the production process is selected. What is the probability that the sample contains exactly two defective parts?
A. 0.9918 B. 0.0082 C. 0.0003 D. 0.9997
Governments can help all businesses by_____
a. prioritizing multi-national companies over domestic ones b. maximizing nationalization of the private sector c. protecting the interests of the society at large d. promoting anti-competitive practices