A Negative Effect of Acquiring Other Firms for the Purpose

question 30

Multiple Choice

A negative effect of acquiring other firms for the purpose of innovation is:

• A) innovations cannot be transferred between organizations.
• B) the effect it can have on the firm's own ability to produce innovations.
• C) innovations may not actually be present in the firm after the purchase is completed.
• D) the acquired firm's employees usually leave.

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Definitions:

Balance Sheet Approach

A method in global mobility management that focuses on maintaining an expatriate's standard of living through various compensations.

Purchasing Power

The ability of an individual or organization to buy goods and services, primarily influenced by income and prices.

Comparable Position Levels

Refers to job roles in different organizations that have similar responsibilities, requirements, and status, making them equivalent in terms of hierarchy and function.

Cultural Differences

The variations in beliefs, behaviors, norms, and values within and between groups of people from different backgrounds.