In technology-based industries,the most common reason for established companies to acquire small,start-up ﬁrms is in order to:
A)Preempt competitive attacks from potential rivals
B)Acquire capabilities in emerging areas of technology
C)Boost revenue growth as their own core businesses experience slower growth
D)Recruit the entrepreneurial leaders of stat-up companies in order to revitalize their own managerial ranks.

Question

Quizplus · Accepted Answer

Established companies often acquire small start-up firms to gain access to their emerging technologies and capabilities, which can help them stay relevant in their industry and continue to innovate. This can also give the established company a strategic advantage over their competitors.

In Technology-Based Industries,the Most Common Reason for Established Companies to Acquire