Acquisition is never an easy feat. One of the problems that was associated with the acquisition of Santa Isabel by Royal Ahold, was that in that year, Ahold's books went red. The reason for this was put on Santa Isabel.
<h3>What is an acquisition?</h3>
An acquisition in business refers to the purchase of majority stake in a company. This is known as a partial acquisition.
In some cases, there are 100% acquisitions. In this case, there was first a partial acquisition to the tune of 70%.
This translated to unwarranted legal battles for Royal Ahold who was asked to pay more for the remaining 30% by a minority shareholders.
The recommendations must come from a technical/financial analysis of what the opportunities are for Royal Ahold should they gain 100% control of the company.
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I don’t understand this please explain it differently please
Answer:
- b. Differences in Values
- c. Tariffs and import quotas generally reduce economic welfare.
Explanation:
Economists are known to disagree with each other a lot especially when they adhere to different economic theories such as the Neoclassic or Keynesian theories. In this case, these economists having opposing viewpoints in relation to what the government is doing in regards to health insurance is most probably due to different economic values they hold.
Regardless of the values they subscribe to however, most economists usually support certain propositions and one of them is free trade. They believe that the presence of tariffs and import quotas serve to reduce economic welfare as there are deadweight losses and things are more expensive for consumers.