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.