____ typically result(s) in the acquiring firm being able to prevent valuable human resources in the acquired firm from leaving.
A. Friendly acquisitions
B. High compensation
Answer: Friendly acquisitions
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Strategic Management Chapter 7
- After a leveraged buyout, _____ typically occur(s).
- A leveraged buyout refers to
- The term "leverage" in leveraged buyouts refers to the
- Whole-firm LBOs tend to result in all the following negative outcomes EXCEPT
- ____ is often used when the acquiring firm paid too high a premium to acquire the target firm.
- ____ refers to a divestiture, spin-off, or some other means of eliminating businesses that are unrelated to a firm's core business.
- An investor is analyzing two firms in the same industry. She is looking for long-term performance from her investment. Both firms are basically identical except one firm is involved in substantial downsizing and the other firm is undertaking aggressive downscoping. The investor should invest in the
- Compared with downsizing, _____ has (have) a more positive effect on firm performance.
- Ambrose is a scientist working for a pharmaceutical company. His company was acquired by a rival pharmaceutical company, and now it is involved in downsizing and downscoping. Ambrose is concerned about his job security, since he is actively involved in amateur sports in his community and does not wish to disrupt his current lifestyle. Ambrose's job will be most likely to be secure if
- Magma, Inc., acquired Vulcan, Inc., 3 years ago. Effective integration of the two companies' culture was never achieved, and the two firms' assets were not complementary. It is very likely that Magma will
- Which of the following is NOT one of the three main restructuring strategies?
- A friendly acquisition
- Which of the following is NOT an attribute of a successful acquisition?
- Typically, in a failed acquisition, the organization will
- The strategy of Citigroup under CEO Sanford Weill was to create a "financial supermarket" where customers shop for a variety of financial services within the same company. This strategy was executed via a series of acquisitions but ultimately failed. This situation was the result of
- All of the following were results of Citigroup's acquisition strategy EXCEPT
- One problem with becoming too large is that large firms
- Thomas is an upper-middle level manager for a firm that has been actively involved in acquisitions over the last 10 years. The firm has grown much larger as a result. Thomas has been dismayed to find that recently the managerial culture of the firm has been turning more and more to controls.
- Which of the following is NOT a result of over-diversification?
- Evidence suggests that firms using acquisitions as a substitute for internally developed innovations
- When managers become overly focused on making acquisitions, it is
- Private synergy
- The expenses incurred by firms trying to create synergy through acquisition are called _____ costs.
- Transaction costs include all of the following EXCEPT