Question

Which of the following is NOT a reason for poor long term performance resulting from an acquisition?

a. with insufficient diversification
b. being unable to achieve synergy.
c. growing too large.
d. having too much debt.

Answer 1

Growing too large is not a reason for poor long-term performance resulting from an acquisition.

Step-by-step explanation:

The option that is NOT a reason for poor long-term performance resulting from an acquisition is b. growing too large. When a company grows through acquisition, it typically aims to achieve synergy, diversification, and growth opportunities. However, growing too large is not a reason for poor performance; in fact, it can be a desired outcome of a successful acquisition.