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.

---

Definitions:

Perfected Security Interest

A legal claim or lien that has been formally established or registered, providing a creditor priority over other claimants in case of debtor default.

Bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).

Superior Rights

Superior rights denote a higher or preeminent claim or entitlement to property, benefits, or legal priority over others.

After-Acquired Property Clause

A provision in a legal agreement that allows a creditor to claim ownership of assets acquired by the debtor after the signing of the agreement.