When a firm uses acquisition as a strategy in lieu of R&D, it is usually trying to gain ownership of the other firm's ________.
A) real estate
B) technology
C) proprietary secrets
D) trade agreements

Question

Quizplus · Accepted Answer

When a firm uses acquisition as a strategy in lieu of R&D, it is usually trying to gain ownership of the other firm's technology. The acquiring firm can leverage the technology to gain a competitive advantage, reduce R&D costs, and quickly enter new markets. Acquiring proprietary secrets and trade agreements are also possible motives, but they typically fall under the category of technology as well. Real estate is not typically a primary consideration in acquisition strategy.

When a Firm Uses Acquisition as a Strategy in Lieu