Q753
An Acquisition is
A.
More risky than other foreign investment techniques
AnswerB.
Less risky than other foreign investment techniques
C.
A way to share control over foreign operations
D.
A way to share risk of a new foreign investment
Answer: Option A
Solution
Answer: Option A
Solution:
An Acquisition is more risky than other foreign investment techniques. An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's shareholders.