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:

Bailor

The party in a bailment contract who temporarily transfers possession but not ownership of a property or good to another party.

Bailee

A person or entity who is given temporary possession but not ownership of personal property by another for a specific purpose.

Insurer

A company that provides insurance policies to individuals or entities, offering financial protection against specified risks.

Common Carrier

A company or entity that provides transportation services to the general public under the regulation of government authorities.