1. A software company is considering the acquisition of a small IT company that will provide documentation and training support for its key customers. The company begins a due diligence investigation. The PRIMARY purpose of this investigation is to:
A) Understand the risks associated with the acquisition.
B) Questionnaire followed by interview
C) Business unit strategy.
D) The signature clarifies acceptance of details by both parties.
2. Which of the following describes the activities which the organization intends to pursue and the course it has charted for the future?
A) Duty of loyalty
B) Correlational study
C) Eliminating coinsurance payments
D) Mission Statement
3. What is the primary benefit of using a structured interview?
A) Structured strategies
B) Minimizes adverse selection
C) Increased predictive validity
D) Forced distribution
4. Which of the following actions should be avoided during the progressive discipline of an employee that will likely lead to termination?
A) The target company completely adopts the management practices of the acquiring company.
B) Summarily discharge so there is no further confrontation and potential for workplace violence
C) Skill variety, task identity, task significance, autonomy, feedback
D) Budgeting authority given to first level supervisor
5. Stock-ownership plans based on organizational performance are an example of a(n)
A) Direct reports
B) effectiveness and efficiency
C) incentive pay program.
D) Comparability to others
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