When Are Capabilities-Motivated Acquisitions Essential

question 33

Multiple Choice

When are capabilities-motivated acquisitions essential?

• A) When industry conditions,like technology advances are central to growth and rivalry is intense
• B) When first-mover advantages for products or services can be added to the portfolio lineup
• C) When the acquired firm can be purchased at a discount due to underperformance
• D) When a market opportunity can slip by faster than a needed capability can be created internally
• E) When the capabilities involve tacit knowledge and complex routines

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Definitions:

Excess Demand

A situation in which the demand for a product exceeds the supply at a set price, leading to shortages.

Bluetooth Headsets

Wireless headsets that use Bluetooth technology to connect with devices such as smartphones, computers, or other electronic devices for audio transmission.

Quantity Demanded

The amount of a good or service that buyers are willing and able to purchase at a specific price.

Excess Demand

Excess demand occurs when the quantity demanded of a good or service at the current price exceeds the quantity supplied, often leading to upward pressure on prices.