You are the VP of Marketing at Stauffer Foods and you learn that the puddings packaged desserts line from General Foods (GF) is available for acquisition. This division produces successful products like Pudding Pops, Instant Pudding, and Pudding in a Cup. You make some of assumptions about this line. Which assumption would you not make

purchasing the line would bring immediate cash flow for Stauffer Foods

Explanation:

The options include:

a. purchasing the line would bring established distribution for Stauffer Foods.

b. purchasing the line would add equity value to Stauffer Foods.

c. All would be reasonable assumptions to make.

d. purchasing the line would bring immediate cash flow for Stauffer Foods

e. purchasing the line could create some difficulties in dealing with debt load.

The assumption that shouldn't be made is that purchasing the line would bring immediate cash flow for Stauffer Foods.

When a product is acquired, one should not expect immediate profit or cash flow instantly. Purchasing the line would not bring immediate cash flow for Stauffer Foods because it's a gradual process even though there may eventually be cash flow and profit in the long run.

All the other options that re given are correct, therefore the correct option is D.

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