Which of the following is an advantage of mergers and acquisitions?
A)In acquisitions, little emphasis is required on control systems and culture.
B)Mergers and acquisitions ensure equal power and status for all managers.
C)Mergers consisting of related companies have uniform norms and values.
D)Mergers and acquisitions are less risky compared to internal ventures.
E)Mergers and acquisitions can help combine the best of efficiencies and cultures.

Question

Quizplus · Accepted Answer

Mergers and acquisitions can help combine the best of efficiencies and cultures, which is an advantage because it leads to an increase in overall efficiency and productivity of the combined company. Option A is incorrect because control systems and culture are very important aspects of mergers and acquisitions, and ignoring them can lead to failure. Option B is incorrect because mergers and acquisitions often lead to a power struggle between managers. Option C is incorrect because related companies may still have different norms and values. Option D is incorrect because mergers and acquisitions can be very risky and require thorough due diligence to minimize the risks.

Which of the Following Is an Advantage of Mergers and Acquisitions