What Is the Advantage of Acquiring Capabilities Through Merger and Acquisition

question 21

Multiple Choice

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

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

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Definitions:

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period.

Context-Dependent Memory

The principle that recall of information is easier when in the same context or environment where the memory was originally formed.

Serial-Order Effect

The impact of an item's position in a sequence on its recall, usually seen in memory tasks like remembering lists.

Depth of Processing

This refers to the concept in cognitive psychology that the level at which information is thought about or engaged with affects how well it is remembered. Deeper, more meaningful processing leads to better retention.