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CAS-001 · Question #235

Company Z is merging with Company A to expand its global presence and consumer base. This purchase includes several offices in different countries. To maintain strict internal security and…

The correct answer is B. Countries may have different legal or regulatory requirements. When a company expands into multiple countries through a merger, the most significant and unavoidable driver of policy change is differing legal and regulatory requirements. Many countries have strong data-privacy laws (e.g., GDPR in the EU, local labor law protections in…

Integration of Computing, Communications and Business Disciplines

Question

Company Z is merging with Company A to expand its global presence and consumer base. This purchase includes several offices in different countries. To maintain strict internal security and compliance requirements, all employee activity may be monitored and reviewed. Which of the following would be the MOST likely cause for a change in this practice?

Options

  • AThe excessive time it will take to merge the company's information systems.
  • BCountries may have different legal or regulatory requirements.
  • CCompany A might not have adequate staffing to conduct these reviews.
  • DThe companies must consolidate security policies during the merger.

How the community answered

(26 responses)
  • A
    4% (1)
  • B
    73% (19)
  • C
    8% (2)
  • D
    15% (4)

Explanation

When a company expands into multiple countries through a merger, the most significant and unavoidable driver of policy change is differing legal and regulatory requirements. Many countries have strong data-privacy laws (e.g., GDPR in the EU, local labor law protections in various regions) that strictly limit or prohibit the type of broad employee monitoring that may be acceptable in the acquiring company's home country. Violating these laws carries legal and financial penalties. Option A (time to merge systems) is an operational concern, not a reason to change a monitoring policy. Option C (staffing) is a resource problem that can be addressed without changing the policy. Option D (consolidating policies) is a natural process during a merger but is driven by the legal requirements described in B, making B the root cause.

Topics

#international compliance#privacy law#regulatory requirements#merger

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