A disadvantage of acquiring a new technology by purchasing the technology owner is that
A) developing technology becomes time consuming.
B) the process requires more staff than internal development.
C) it makes the purchasing firm highly dependent on its internal development capabilities.
D) the purchasing company will not own or control the unique technology.
E) acquiring the company can be expensive.

Question

Quizplus · Accepted Answer

Acquiring a company can be expensive due to the costs associated with the purchase, such as the acquisition price, legal fees, and integration expenses. This is a recognized disadvantage compared to other methods of obtaining new technology, such as internal development, which might not require such a significant upfront financial investment.

A Disadvantage of Acquiring a New Technology by Purchasing the Technology