ABB Is a Swiss-Based Manufacturer of Industrial Equipment with Annual

question 41

Multiple Choice

ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion. At one time, ABB had a salesforce that sold only generators, one that sold only boilers, another that sold only transformers, and so forth. Each of its salespeople was an expert on the items he or she sold. Its salesforce was organized by

• A) workload.
• B) customer.
• C) geography.
• D) product.
• E) size.

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Definitions:

Asset Purchase

The buying of a company's assets instead of its stock, often to acquire specific items rather than taking over the business entirely.

Leveraged Buyout

An acquisition where the buyer uses a significant amount of borrowed money to finance the purchase of a company, often using the assets of the company being bought as collateral for the loans.

Corporate Takeover

The acquisition of control over a corporation by another company or investor group, typically through the purchase of a majority of its stock.

Shareholder Votes

The rights given to investors in a corporation to vote on key company decisions and elect the board of directors, crucial for corporate governance.