PK0-004 Question #460: Real Exam Question with Answer & Explanation

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 en

Question

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

Options

ARisk avoidance
BOutsourcing
CBusiness demerger
DBusiness acquisition

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.

Community Discussion

No community discussion yet for this question.

Full PK0-004 Practice