It is more risky to seek to obtain new capabilities for your firm by:
A)Buying another firm, or its capabilities
B)Acquiring access to another firm's capabilities
C)Buying out the minority interests of a 90%-owned subsidiary
D)Developing capabilities in-house

Question

Quizplus · Accepted Answer

Buying another firm, or its capabilities, involves a higher level of risk as it requires a large investment and may not guarantee the desired results. There are also potential issues such as cultural differences, integration challenges, and regulatory hurdles that can lead to failure. Acquiring access to another firm's capabilities, buying out minority interests, and developing capabilities in-house are comparatively less risky as they involve less capital investment and provide greater control over the process.

It Is More Risky to Seek to Obtain New Capabilities