What are the two possible problems caused by acquisition premiums?
What will be an ideal response?
Premiums present two problems for managers:
1. Premiums increase the level of returns that must be extracted from the combined businesses.
2. Because of the time value of money, delays in implementing and extracting synergies increase the ante on
required performance improvements. In other words, the longer it takes to implement performance
improvements, the lower the likelihood that the acquisition will be successful.
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Indirect loss coverage (business income insurance) will cover all the following except:
A) lost profits B) continuing expenses C) income taxes on lost profits D) extra expenses incurred to maintain operations after a loss
The need for ________ is similar to Maslow's need for ________
A) affiliation; safety B) power; esteem C) achievement; self-actualization D) affirmation; esteem