A Manager in Your Company Is Proposing the Acquisition of Taylor

question 70

Multiple Choice

A manager in your company is proposing the acquisition of Taylor Company, which has developed a new, innovative product instead of a strategy of developing new products in-house. All of the following arguments are correct EXCEPT:

• A) the acquisition of Taylor should be primarily for defensive rather than strategic reasons.
• B) research suggests that acquisition strategies are a common means of avoiding risky internal ventures.
• C) the outcomes of acquisitions can be estimated more easily and accurately than the outcomes for an internal product development process.
• D) acquisitions could become a substitute for innovation within your firm.

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Definitions:

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Insulin Injection

The administration of insulin via a syringe, pen, or pump to manage blood glucose levels, primarily in individuals with diabetes.

Compensatory Reaction

A psychological and physiological concept where the body automatically adjusts to counterbalance or mitigate any changes or effects it experiences.

Hypodermic Needle

A slender, hollow needle used for injections or extractions of fluids, typically attached to a syringe.