What Strategic Reason Might Prompt an Organization in One Industry

question 21

Multiple Choice

What strategic reason might prompt an organization in one industry to acquire a firm in a completely different industry?

• A)To increase environmental uncertainty
• B)To reduce resource dependence
• C)To obtain a flatter structure
• D)To reduce differentiation
• E)To reduce competition

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Definitions:

Right to Cure

A legal concept allowing a party in breach of contract the opportunity to fix the violation within a specified period.

Nonconforming Tools

Equipment or tools that do not meet the specific standards or requirements set by a contract or regulation.

Notify

The act of informing someone about something, typically through a formal or official means.

Contract Price

The agreed amount of money one party pays another in exchange for goods, services, or fulfilling certain conditions outlined in a contract.