Scenario: Blickinstock at the Crossroads
Auto parts supplier,Blickinstock Ltd. ,would like to expand its presence in Latin America.To that end,Blickinstock is trying to decide whether to purchase an existing company in a remote region of Argentina or build its own subsidiary.Keith Moon,Blickinstock's vice president of global business development,will be making a presentation to the board outlining the company's options.
-Blickinstock has identified a company that would be open to merger or acquisition.Which of the following is NOT a reason to go ahead with the merger?
A)The merger could help increase Blickinstock's global competitiveness.
B)The merger could allow the company to get a foothold in the Latin American market.
C)The merger could help to fill the gaps in Blickinstock's product line.
D)The merger would allow Blickinstock to remain focused on the home market.

Question

Quizplus · Accepted Answer

Option D is not a reason to go ahead with the merger. In fact, the purpose of the merger is to expand Blickinstock's presence in Latin America, so the idea of remaining focused on the home market is contradictory to the company's expansion goal. Options A, B, and C are all valid reasons to go ahead with the merger as they relate to increasing global competitiveness, market penetration, and product expansion.