Question

Acquisitions can take a lot of time for top level managers for all the following reasons EXCEPT:

a. they must prepare for acquisition negotiations.
b. only top managers can perform the required due diligence.
c. managers are involved in the search for viable acquisition candidates.
d. the integration process after acquisition requires managerial attention.

Answer 1

The correct answer is letter "B": only top managers can perform the required due diligence.

Step-by-step explanation:

In business terms, an acquisition is the purchase of a company or the division of a company. Some acquisitions are paid in cash while others are paid with a combination of cash and the acquiring company stock. Some are even financed with debt which is called a leveraged buyout.

Acquisitions are often done by another company in a similar line of business which is to used the purchased business to improve its own operations. General managers with the help of external analysts are usually in charge of the acquisition process.