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 above

Question

Quizplus · Accepted Answer

Selling off divisions that fall outside the scope of their core competence is a common strategy used in mergers and acquisitions to focus on their core strengths and remain competitive. Acquiring strategic assets is also a common strategy, but it is done to increase competitiveness rather than reduce it. Leveraging intangible assets through licensing can be a strategy, but it is not specifically related to mergers and acquisitions.

Mergers and Acquisitions Are a Popular Mode of Investment for Firms