__________ may be necessary because acquisitions create a situation in which the newly formed firm has excess capacity in organizational functions such as sales, manufacturing, distribution, and human resource management.
A) Management buyout
B) Leveraged buyout
C) Downsizing
D) Downscoping

Question

Quizplus · Accepted Answer

Downsizing may be necessary because acquisitions often lead to excess capacity in various organizational functions, and reducing the workforce or resources can help align the firm's capacity with its operational needs.

__________ May Be Necessary Because Acquisitions Create a Situation in Which