The chief reason that some firms choose acquisitions (or mergers) to enter a foreign market is that they can: Select one: A. receive greater tax relief. B. receive greater profits. C. reduce debt. D. increase stock price. E. enter the market more quickl

Question

Business

Valerie Wolf

17 February, 10:20

The chief reason that some firms choose acquisitions (or mergers) to enter a foreign market is that they can: Select one: A. receive greater tax relief. B. receive greater profits. C. reduce debt. D. increase stock price. E. enter the market more quickl

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Answers (1)

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Benjamin Mayo · Answer 1

The correct answer is letter "E": enter the market more quickly.

Explanation:

An acquisition is the purchase of a company or a division of a company. Some acquisitions are paid out in cash, while others are paid out with a combination of cash and the acquiring company's stock. Some are even financed by debt, which is called a leveraged buyout.

Acquisitions are often carried out by another company in a similar line of business that wants to use the purchased business to improve its own operations and to enter a certain market more quickly.