Acquisitions are an example of the ________ governance option for firms pursuing international strategies.
A) market
B) hierarchical
C) corporate
D) intermediate market

Question

Quizplus · Accepted Answer

Acquisitions involve the hierarchical governance option, where one firm acquires another and assumes control over its operations. This is different from the market option, where firms do not take ownership but instead engage in arms-length transactions, and the intermediate market option, where firms jointly establish a separate entity to perform certain functions. The corporate governance option refers to the centralization of decision-making within a single entity, which may or may not involve acquisitions.

Acquisitions Are an Example of the ________ Governance Option for Firms