Question at position 17 Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions? InvestorsTop managementMiddle managementCustomers

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BlackTom AI · Accepted Answer

The question asks which stakeholder group has the most concern about short-term revenue declines during mergers and acquisitions.
Option 1: Investors. Investors typically focus on financial performance, including short-term revenue and earnings, because it directly affects stock price, dividends, and return on investment. Their concern is often heightened during M&A due to integration risks and uncertainty about near-term cash flows.
Option 2: Top management. While top management does care about the merger’s financial outcomes, their primary concern usually spans strategic alignment, governance, and long-term value creation rather than exclusively short-term revenue fluctuations. They balance multiple objectives and incentives.
Option 3: Middle management. Middle managers are concerned with implementation, operations, and meeting targets within the organization during an M&A. They worry about disruption, workload, and process changes, but their focus is typically on execution rather than the macro short-term revenue signal driving investor decisions.
Option 4: Customers. Customers are affected by product quality, service levels, and continuity, but their primary concern in the context of short-term revenue drops is not about corporate financial metrics. Their interest is more in the product and service experience than in the firm’s immediate revenue performance.
In summary, while several groups monitor M&A outcomes, investors have the strongest interest in short-term revenue movements since these movements influence market valuations and expected returns, making this option the most aligned with the question’s framing.

Question at position 17 Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions? InvestorsTop managementMiddle managementCustomers

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