One Advantage of Acquisitions as a Means of Entering Foreign

question 107

Multiple Choice

One advantage of acquisitions as a means of entering foreign markets is that

• A) they are quick to execute and help firms to rapidly build their presence in the target foreign market.
• B) it is much easier to change the culture of an existing organization than build a new organization.
• C) it is easier to convert the operating routines of acquired units than establish routines in new subsidiaries.
• D) they give firms access to valuable intangible assets while minimizing a pileup of tangible assets.
• E) acquired firms are often undervalued and hence assets can be purchased at minimal prices.

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Definitions:

Incentive Plans

Programs designed to motivate and reward employees for achieving specific performance targets or business goals.

Demotivator

An aspect or condition that reduces motivation or enthusiasm.

Reward

Benefits, compensation, or recognition given to employees in exchange for their work, performance, or a specific achievement.

Behavior

The way an individual or group responds or behaves in reaction to stimuli coming from outside or within.