Which of the following is NOT true concerning application of the conservation of value principle to acquisitions?
A)An acquisition will create value if it increases cash flows sufficiently by reducing costs.
B)An acquisition will create value if it increases cash flows sufficiently by increasing revenue growth.
C)An acquisition will create value if it increases cash flows sufficiently by improving the use of fixed or working capital.
D)An acquisition will create value if it grows revenues.

Question

Quizplus · Accepted Answer

rowing revenues alone does not guarantee value creation. The revenue growth must translate into adequate cash flow increases.

Which of the Following Is NOT True Concerning Application of the Conservation