When Merging Two Organizations,a Separation Strategy Is Most Commonly Applied

question 77

Multiple Choice

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

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

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Definitions:

Marginal Utility

The increased contentment or advantage obtained by the consumption of an extra unit of a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers from participating in the market.

Utility

Utility refers to the total satisfaction received from consuming a good or service.

Diminishing Utility

The principle that as consumption of a good or service increases, the marginal utility derived from each additional unit decreases.