Not all business combinations are successful, and many entail substantial risk. Acquiring another company may involve a

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Not all business combinations are successful, and many entail substantial risk. Acquiring another company may involve a number of different types of risk. Obtain a copy of the 10-K report for Google, Inc., for the year ended December 31, 2006, available at the SEC’s website (www.sec.gov). The report also can be accessed through Yahoo! Finance or the company’s Investor Relationspage.

Required
On page 21 of the 10-K report, Google provides information to investors about its motivation for acquiring companies and the possible risks associated with such acquisitions. Briefly discuss the risks that Google sees inherent in potential acquisitions.

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Advanced Financial Accounting

ISBN: 978-0078025624

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

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