Question

18. Which of the following is not a considered a risk to a merger or acquisition strategy?

a. failure to merge culture

b. potential rigidity in supply chain

c. loss of competing customers

d. economies of scale

19. Which of the following is a potential risk to an outsourcing strategy?

a. financial challenge or risk by outsourcer

b. cost reduction

c. potential improvement to expertise and efficiency

d. stay focused on your own core competencies

20. The three most important elements to a strategic alliance/partnership are clear concise contracts, mutual trust/cooperation and open communication.

a. true

b. false

Answer 1

18.

The correct answer will be option D, economies of scale are not considered as a risk to merger or acquisition instead it is a great thing to happen during a merger or acquisition as it reduces the overall costs of operations of the firms merging together.

19.

The correct answer will be option A If the outsourced adds an additional risk such as risk to privacy or intrude in the daily work of the organisation.

20.

The correct answer will be option A

The statement is true