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PK0-004 · Question #199

Three IT companies have agreed to summarize their efforts as a common organization to generate new businesses in the IT cloud computing industry. Which of the following is the type of organizational…

The correct answer is C. Merger. A merger occurs when two or more separate organizations combine to form a single, unified entity pursuing shared business goals.

Basics of IT and governance

Question

Three IT companies have agreed to summarize their efforts as a common organization to generate new businesses in the IT cloud computing industry. Which of the following is the type of organizational change described?

Options

  • AExpansion
  • BRightsizing
  • CMerger
  • DOnboarding

How the community answered

(24 responses)
  • B
    8% (2)
  • C
    88% (21)
  • D
    4% (1)

Why each option

A merger occurs when two or more separate organizations combine to form a single, unified entity pursuing shared business goals.

AExpansion

Expansion refers to a single organization growing its operations, market presence, or workforce, not the combination of multiple independent companies.

BRightsizing

Rightsizing involves adjusting an organization's workforce or structure to an optimal size, typically through reductions, and does not describe multi-company consolidation.

CMergerCorrect

A merger is defined as the consolidation of multiple distinct organizations into one common entity, which precisely matches the scenario where three IT companies agree to unify their operations to pursue new business in cloud computing. This differs from an acquisition in that the combining parties mutually agree to form a new or shared organizational structure.

DOnboarding

Onboarding describes the process of integrating new employees or systems into an existing organization, not the unification of separate companies.

Concept tested: Organizational change types - mergers and consolidations

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#organizational change#merger#IT companies#business combination

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