PK0-004 · Question #557
Which of the following describes the difference between an acquisition and outsourcing?
The correct answer is C. In an acquisition, the organizations become one, whereas they remain separate in outsourcing. In an acquisition (also called a merger and acquisition or M&A), one company purchases another and the two organizations merge into a single legal and operational entity - they become one. In outsourcing, a company contracts specific functions or services to an external…
Question
Which of the following describes the difference between an acquisition and outsourcing?
Options
- AIn an acquisition, the organizations remain separate, whereas they become one in outsourcing.
- BIn an acquisition, the organizations become one, whereas they move to a new location in
- CIn an acquisition, the organizations become one, whereas they remain separate in outsourcing.
- DIn an acquisition, the organizations become two, whereas they remain distinct in outsourcing.
How the community answered
(29 responses)- A7% (2)
- C90% (26)
- D3% (1)
Explanation
In an acquisition (also called a merger and acquisition or M&A), one company purchases another and the two organizations merge into a single legal and operational entity - they become one. In outsourcing, a company contracts specific functions or services to an external third-party vendor, but both organizations retain their separate legal identities and structures - they remain separate. Options A and D reverse or distort this relationship, and option B introduces an irrelevant concept (relocation) not associated with either term.
Topics
Community Discussion
No community discussion yet for this question.