Mergers and acquisitions are a popular mode of investment for firms wishing to protect,consolidate and advance their global competitive positions.Examples include
A)selling off divisions that fall outside the scope of their core competence.
B)acquiring strategic assets that reduce their competitiveness.
C)firms can better leverage their intangible assets and on a larger scale through licensing.
D)none of the options

Question

Quizplus · Accepted Answer

The option of selling off divisions that fall outside the scope of their core competence is a popular reason for mergers and acquisitions. This allows companies to focus on their core strengths and divest non-core businesses that may be hindering their overall competitiveness.

Mergers and Acquisitions Are a Popular Mode of Investment for Firms