A company purchased a parachute supplier and is now sending parachutes to the research and development department. Which of the following has occurred?

The correct answer is D. Business acquisition. A business acquisition (D) occurs when one company buys and takes ownership of another company. Here, the company purchased the parachute supplier outright, meaning it now owns and controls that supplier. Risk avoidance (A) refers to changing a project plan to eliminate a risk…

Basics of IT and governance

Question

Options

ARisk avoidance
BOutsourcing
CBusiness demerger
DBusiness acquisition

How the community answered

(47 responses)

A
2% (1)
C
2% (1)
D
96% (45)

Explanation

A business acquisition (D) occurs when one company buys and takes ownership of another company. Here, the company purchased the parachute supplier outright, meaning it now owns and controls that supplier. Risk avoidance (A) refers to changing a project plan to eliminate a risk entirely, not a corporate transaction. Outsourcing (B) means hiring an external company to perform services without owning them. A business demerger (C) is the opposite - splitting one company into separate entities rather than combining them.

Topics

#business acquisition#organizational change#corporate strategy#procurement

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