GTS COMMUNITY (MCQ)

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That strategy is the acquisition of a value-priced company by a growth company. Using the growth company's higher-priced stock for the acquisition can produce outsized revenue and earnings growth. Even better is the use of cash, particularly in a growth period when financial aggressiveness is accepted and even positively viewed.he key public rationale behind this strategy is synergy - the 1+1=3 view. In many cases, synergy does occur and is valuable. However, in other cases, particularly as the strategy gains popularity, it doesn't. Joining two different organizations, workforces and cultures is a challenge. Simply putting two separate organizations together necessarily creates disruptions and conflicts that can undermine both operations.

The S&P 500 slumped 1.8% on Monday and Tuesday, thanks to China Evergrande, the Chinese property company that looks like it is ready to default on its more-than $300 billion in debt. Cries of the next Lehman Brothers—or maybe the next Silverado?—echoed through the canyons of Wall Street as investors prepared for the worst.