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PK0-004 · Question #392

A local company is part of a hostile takeover by a multinational conglomerate. The Chief Executive Officer (CEO) directs that all meetings be conducted via video conference to save costs and…

The correct answer is B. corporate acquisition. The scenario explicitly describes a hostile takeover - one company forcibly acquiring another - which is the definition of a corporate acquisition (B). The resulting directive to use video conferencing is a consequence of the acquisition (cost savings from the new parent…

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Question

A local company is part of a hostile takeover by a multinational conglomerate. The Chief Executive Officer (CEO) directs that all meetings be conducted via video conference to save costs and expedite communication. This scenario is an example of:

Options

  • Aoutsourcing.
  • Bcorporate acquisition.
  • Cinternal reorganization.
  • Dprocess change.
  • Erelocation.
  • Fresource management.

How the community answered

(35 responses)
  • A
    3% (1)
  • B
    94% (33)
  • D
    3% (1)

Explanation

The scenario explicitly describes a hostile takeover - one company forcibly acquiring another - which is the definition of a corporate acquisition (B). The resulting directive to use video conferencing is a consequence of the acquisition (cost savings from the new parent company), not a separate category. Outsourcing (A) means contracting work to an external party. Internal reorganization (C) happens within a single organization. Process change (D) refers to altering workflows. Relocation (E) involves physically moving. Resource management (F) refers to managing people and assets. The root event described is clearly a corporate acquisition.

Topics

#corporate acquisition#organizational change#hostile takeover

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