If a firm makes an acquisition to exploit perceived opportunities in a new industry, it is expecting ____________________ as a result of the purchase.
A) Enhanced marketing strength.
B) Strategic benefits.
C) Economies of scale.
D) Tax gains.
E) Enhanced market power.

Question

Quizplus · Accepted Answer

When a firm makes an acquisition to exploit perceived opportunities in a new industry, it is primarily seeking strategic benefits. This includes entering new markets, accessing new customer bases, or acquiring new technologies or competencies that complement the firm's existing operations.

If a Firm Makes an Acquisition to Exploit Perceived Opportunities