Which of the Following Is an Advantage of an Acquisition

question 71

Multiple Choice

Which of the following is an advantage of an acquisition as a means of entry into foreign markets?

• A) It is much easier to change the culture of an existing organization than build a new organization.
• B) It is easier to convert the operating routines of acquired units than establish routines in new subsidiaries.
• C) It yields greater long-run returns than greenfield ventures.
• D) It gives firms access to valuable intangible assets along with a set of tangible assets.
• E) Acquired firms are often undervalued and hence assets can be purchased at minimal prices.

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Definitions:

Reproductive Isolating

Biological barriers that prevent different species from mating and producing fertile offspring, maintaining species boundaries.

Sociobiology

The scientific study of the biological aspects of social behavior in animals and humans.

E. O. Wilson

An influential American biologist who was a leading researcher in sociobiology, biodiversity, and the importance of ants and other small creatures in ecosystems.

N. Tinbergen

Nikolaas Tinbergen was a Dutch biologist and ornithologist who won the Nobel Prize in Physiology or Medicine for his discoveries concerning social behavior patterns in animals.