Which of the following is a disadvantage of growth by means of external growth strategies?
A) diversification of business risk
B) economies of scale
C) getting access to proprietary products or services
D) reducing competition
E) increased business complexity

Question

Quizplus · Accepted Answer

External growth strategies, such as mergers and acquisitions, can result in increased business complexity. Combining two separate organizations with different cultures and operations can lead to challenges in integration and coordination, which can ultimately hinder growth and profitability.

Which of the Following Is a Disadvantage of Growth by Means