A firm should consider using mergers and acquisitions only when Blank______.Multiple choice question.the firm in question may need to reverse the process and break off the relationshipthe resource in question is highly tradableit is important to be extremely close to the resource partner in order to understand underlying informationexternal partners are unlikely to provide additional value to the resource
Question
A firm should consider using mergers and acquisitions only when Blank______.Multiple choice question.the firm in question may need to reverse the process and break off the relationshipthe resource in question is highly tradableit is important to be extremely close to the resource partner in order to understand underlying informationexternal partners are unlikely to provide additional value to the resource
Solution
The correct answer is: "it is important to be extremely close to the resource partner in order to understand underlying information".
Mergers and acquisitions are often used as a strategy to gain access to valuable resources. This is particularly true when the resource in question is not easily tradable or when the firm needs to understand complex, underlying information about the resource. In such cases, being extremely close to the resource partner can be beneficial. This closeness can be achieved through a merger or acquisition.
On the other hand, if the resource is highly tradable or if external partners are unlikely to provide additional value, then a merger or acquisition may not be necessary or beneficial. Similarly, if there is a high likelihood that the firm may need to reverse the process and break off the relationship, then a merger or acquisition may not be the best strategy.
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