Firms may find internal development preferable to acquisitions for all of the following reasons except ________.
A) acquisitions are less expensive than internal development
B) internal development entails incremental investment over time
C) acquisitions are all-or-nothing propositions
D) organizational conflict is more likely during acquisitions

Question

Quizplus · Accepted Answer

The question asks for a reason why firms may not find acquisitions preferable to internal development. Therefore, choice A, which suggests that acquisitions are less expensive than internal development, does not fit the criteria and is the correct answer. Choices B, C, and D are all valid reasons why firms may prefer internal development to acquisitions.

Firms May Find Internal Development Preferable to Acquisitions for All