What Is the Advantage of Acquiring Capabilities Through Merger and Acquisition

question 44

Multiple Choice

What is the advantage of acquiring capabilities through merger and acquisition?

• A)Speed, because developing new capabilities internally can take many years of effort.
• B)Empowerment, because you can capture the essence of the capability and refocus the firm.
• C)Price, because it is always cheaper to buy a whole company and pull out the capabilities individually.
• D)Assets, because they are the basis of the sale.
• E)Investment, because resources and capabilities are considerable stronger.

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Definitions:

Influence Tactics

Strategies or actions employed by a person to affect or change others' behaviors, attitudes, or beliefs in a certain direction.

Expert Power

The influence a person holds due to their expertise, skills, or knowledge in a particular area.

Rationality

Is the quality of being based on or in accordance with reason or logic, often related to making decisions that are compatible with one's own interests and achieving the most efficient outcomes.

Strong Sense

An intensive or forceful perception or conviction.