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.

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Definitions:

Investment-Grade Bond

A bond with a high credit rating, indicating lower risk of default, making it an attractive investment option for conservative investors.

Junk Bond

A high-yield bond with a lower credit rating than investment-grade bonds, reflecting higher risk.

Annual Interest

Interest calculated or paid once per year on a loan or investment, based on the initial principal or on the amount outstanding.

Call Provision

A provision in a bond or similar fixed-income instrument that permits the issuer to pay off the principal ahead of its maturity date.