Question

Cisco Systems, a computer networking firm, has undertaken over 80 acquisitions in the last decade. It uses these acquisitions to acquire _______________ that will permit it to expand its product offerings and services through the addition of the acquired technologies.

Answer 1

Answer:

The correct answer is letter "D": valuable resources.

Explanation:

Acquisitions are purchases of companies by other entities by buying the target entity's stock. When the acquiring company purchases more than 50% of the stocks, it has full decisions over the target firm. Acquisitions happen when one institution wants to break market entry barriers, to decrease competition or to gain new technology. Therefore, the acquiring company obtains a valuable resource from the target firm.