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PK0-004 · Question #479

Company A and Company B have come together to form a new Company C. Staff members from both companies have been moved to Company C, and there are rumors that some staff might be asked to leave…

The correct answer is A. business reorganization D. business merger. When two companies combine to form a new entity (Company C), this is a business merger (D)-the joining of two separate organizations into one. The movement of staff, restructuring of teams, and potential layoffs that follow are characteristic of a business reorganization (A)…

Basics of IT and governance

Question

Company A and Company B have come together to form a new Company C. Staff members from both companies have been moved to Company C, and there are rumors that some staff might be asked to leave. These are examples of: (Choose two.)

Options

  • Abusiness reorganization
  • Bbusiness relocation
  • Cbusiness outsourcing
  • Dbusiness merger
  • Ebusiness process change

How the community answered

(34 responses)
  • A
    88% (30)
  • B
    6% (2)
  • C
    3% (1)
  • E
    3% (1)

Explanation

When two companies combine to form a new entity (Company C), this is a business merger (D)-the joining of two separate organizations into one. The movement of staff, restructuring of teams, and potential layoffs that follow are characteristic of a business reorganization (A), where the internal structure is reshaped to fit the new combined entity. Business relocation (B) refers to physically moving offices. Business outsourcing (C) means contracting work to external parties. Business process change (E) refers to altering operational workflows-none of which describe the scenario presented.

Topics

#business merger#business reorganization#organizational change#company restructuring

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