When Merging Two Organizations, a Separation Strategy Is Most Commonly

question 23

Multiple Choice

When merging two organizations, a separation strategy is most commonly applied when

• A)the acquired firm's culture doesn't work, whereas the culture of the acquiring firm does work.
• B)a bicultural audit reveals that both companies have very similar cultures.
• C)one company has an effective culture and employees at the other company would embrace that culture if applied to them.
• D)the two organizations operate in distinct industries.
• E)both companies have relatively weak cultures that are generally ineffective.

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Definitions:

Schedule A

A form used in the US tax system for itemizing allowable deductions against income, such as medical expenses, taxes paid, and charitable contributions.

Personal/Rental Property

Property that can be used for personal purposes or rented out to generate income, impacting the treatment of expenses and income for tax purposes.

Passive Activities

Economic activities or investments in which the investor does not materially participate, often subject to different tax rules.

Schedule A

A form used in the U.S. tax system for itemizing deductions, including medical expenses, taxes paid, and charitable contributions.