PK0-004 · Question #337
The Chief Executive Officer (CEO) has announced that the hardware division will be sold to another company. The sale of this division is an example of which of the following?
The correct answer is D. Business merger. When a company sells a division to another company, the sold unit is absorbed into and combined with the acquiring organization, which constitutes a business merger. This type of organizational change has direct implications for project scope, staffing, and governance.
Question
The Chief Executive Officer (CEO) has announced that the hardware division will be sold to another company. The sale of this division is an example of which of the following?
Options
- AOutsourcing
- BRelocation
- CBusiness process change
- DBusiness merger
How the community answered
(35 responses)- A3% (1)
- B3% (1)
- C6% (2)
- D89% (31)
Why each option
When a company sells a division to another company, the sold unit is absorbed into and combined with the acquiring organization, which constitutes a business merger. This type of organizational change has direct implications for project scope, staffing, and governance.
Outsourcing means contracting specific functions or services to an external vendor while retaining ownership, which is not the same as permanently selling a division.
Relocation refers to moving people or operations to a different physical site, not a transfer of ownership or corporate structure.
A business process change refers to modifying how internal workflows or operations are performed, not a change in who owns or controls a business unit.
A business merger occurs when a company or one of its units is combined with and absorbed into another organization. The hardware division being sold to and integrated into a different company meets the definition of a merger, as the division becomes part of the new owner's structure rather than remaining a standalone or contracted entity.
Concept tested: Organizational change types - business merger identification
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