It is currently 20 Oct 2017, 09:53

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

In an effort to explain why business acquisitions often fail, schola

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Top Contributor
4 KUDOS received
Director
Director
User avatar
B
Status: I don't stop when I'm Tired,I stop when I'm done
Joined: 11 May 2014
Posts: 570

Kudos [?]: 2684 [4], given: 220

Location: Bangladesh
Concentration: Finance, Leadership
GPA: 2.81
WE: Business Development (Real Estate)
In an effort to explain why business acquisitions often fail, schola [#permalink]

Show Tags

New post 26 Jul 2016, 14:25
4
This post received
KUDOS
Top Contributor
3
This post was
BOOKMARKED
Question 1
00:00
A
B
C
D
E

Question Stats:

76% (02:47) correct 24% (02:38) wrong based on 491

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

Question Stats:

73% (00:46) correct 27% (00:46) wrong based on 477

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

Question Stats:

56% (01:03) correct 44% (01:07) wrong based on 469

HideShow timer Statistics

Question 4
00:00
A
B
C
D
E

Question Stats:

68% (01:21) correct 32% (01:22) wrong based on 448

HideShow timer Statistics

OG 2017 New RCLine
    In an effort to explain why business acquisitions
    often fail, scholars have begun to focus on the role
    of top executives of acquired companies. Acquired
    companies that retain their top executives tend to
(5)
    have more successful outcomes than those that do
    not. Furthermore, existing research suggests that
    retaining the highest-level top executives, such as the
    CEO (chief executive officer) and COO (chief operating
    officer), is related more positively to post acquisition
(10)
    success than retaining lower-ranked top executives.
    However, this explanation, while insightful, suffers from
    two limitations. First, the focus on positional rank does
    not recognize the variation in length of service that
    may exist in top executive posts across companies,
(15)
    nor does it address which particular top executives
    (with respect to length of service) should be retained
    to achieve a successful acquisition outcome. Second,
    the relationship between retained top executives and
    acquisition outcomes offered by existing research
(20)
    is subject to opposing theoretical explanations
    related to length of service. The resource-based view
    (RBV) suggests that keeping acquired company top
    executives with longer organizational tenure would lead
    to more successful outcomes, as those executives
(25)
    have idiosyncratic and nontransferable knowledge
    of the acquired company that would be valuable for
    the effective implementation of the acquisition. The
    opposing position, offered by the upper echelons
    perspective (UEP), suggests that retaining top
(30)
    executives having short organizational tenure would
    lead to more successful outcomes, as they would have
    the adaptability to manage most effectively during the
    uncertainty of the acquisition process
    Responding to these limitations, Bergh conducted
(35)
    a study of executive retention and acquisition
    outcome that focused on the organizational tenure of
    retained company top executives in 104 acquisitions,
    followed over 5 years. Bergh considered the
    acquisition successful if the acquired company was
(40)
    retained and unsuccessful if it was divested. Bergh’s
    findings support the RBV position. Apparently, the
    benefits of long organizational tenure lead to more
    successful outcomes than the benefits of short
    organizational tenure. While longer tenured top
(45)
    executives may have trouble adapting to change, it
    appears that their perspectives and knowledge bases
    offer unique value after the acquisition. Although
    from the UEP position it seems sensible to retain
    less tenured executives and allow more tenured
(50)
    ones to leave, such a strategy appears to lower the
    probability of acquisition success.
(Book Question: 427)
According to the passage, the research mentioned in line 6 suggests which of the following about lower-ranked top executives and postacquisition success?
A. Given that these executives are unlikely to contribute to postacquisition success, little effort should be spent trying to retain them.
B. The shorter their length of service, the less likely it is that these executives will play a significant role in postacquisition success.
C. These executives are less important to postacquisition success than are more highly ranked top executives.
D. If they have long tenures, these executives may prove to be as important to postacquisition success as are more highly ranked top executives.
E. Postacquisition success is unlikely if these executives are retained.

[Reveal] Spoiler:
C

(Book Question: 428)
The resource-based view, as described in the passage, is based on which of the following ideas?
A. The managerial skills of top executives become strongest after the first five years of their tenure.
B. Company-specific knowledge is an important factor in the success of an acquisition process.
C. The amount of nontransferable knowledge possessed by long-tenured top executives tends to be underestimated.
D. Effective implementation of an acquisition depends primarily on the ability of executives to adapt to change.
E. Short-tenured executives are likely to impede the implementation of a successful acquisition strategy.

[Reveal] Spoiler:
B

(Book Question: 429)
The passage suggests that Bergh and a proponent of the upper echelons perspective would be most likely to disagree over which of the following?
A. Whether there is a positive correlation between short organizational tenure and managerial adaptability
B. Whether there is a positive correlation between long organizational tenure and the acquisition of idiosyncratic and nontransferable knowledge
C. Whether adaptability is a useful trait for an executive who is managing an acquisition process
D. Whether retaining less-tenured top executives of an acquired company is an optimal strategy for achieving postacquisition success
E. Whether retaining highest-level top executives of acquired companies is more important than retaining lower-ranked top executives

[Reveal] Spoiler:
D

(Book Question: 430)
According to the passage, prior to Bergh’s study, research on the role of top executives of acquired companies in business acquisition success was limited in which of the following ways?
A. It did not address how the organizational tenure of top executives affects postacquisition success.
B. It did not address why some companies have longer-tenured CEOs than others.
C. It did not consider strategies for retaining long-tenured top executives of acquired companies.
D. It failed to differentiate between the contribution of highest-level top executives to postacquisition success and that of lower-ranked top executives.
E. It underestimated the potential contribution that lower-level top executives can make to postacquisition success.

[Reveal] Spoiler:
A

[Reveal] Spoiler: Question #1 OA
[Reveal] Spoiler: Question #2 OA
[Reveal] Spoiler: Question #3 OA
[Reveal] Spoiler: Question #4 OA

_________________

Md. Abdur Rakib

Please Press +1 Kudos,If it helps
Sentence Correction-Collection of Ron Purewal's "elliptical construction/analogies" for SC Challenges

Kudos [?]: 2684 [4], given: 220

BSchool Forum Moderator
User avatar
S
Joined: 28 Nov 2014
Posts: 916

Kudos [?]: 207 [0], given: 79

Concentration: Strategy
Schools: Fisher '19 (M)
GPA: 3.71
Reviews Badge
Re: In an effort to explain why business acquisitions often fail, schola [#permalink]

Show Tags

New post 16 Aug 2016, 07:37
Got all correct in 11 minutes. I took quite some time to solve the last question but fortunately, I got it right!

Does anyone has any sort of tips on how to attack such sort of passages with 100% accuracy in minimum time. The case with me is, although I get 100% correct, I take more than allotted time to solve the question. Any views mikemcgarry MBAPrepCoach daagh sayantanc2k

Kudos [?]: 207 [0], given: 79

3 KUDOS received
Manager
Manager
User avatar
B
Status: In the realms of Chaos & Night
Joined: 13 Sep 2015
Posts: 171

Kudos [?]: 91 [3], given: 94

In an effort to explain why business acquisitions often fail, schola [#permalink]

Show Tags

New post 14 Dec 2016, 04:44
3
This post received
KUDOS
(Book Question: 427)
According to the passage, the research mentioned in line 6 suggests which of the following about lower-ranked top executives and post acquisition success?
A. Given that these executives are unlikely to contribute to postacquisition success, little effort should be spent trying to retain them.
B. The shorter their length of service, the less likely it is that these executives will play a significant role in postacquisition success. - This is a RBV proponent view.
C. These executives are less important to postacquisition success than are more highly ranked top executives. - Stated in passage
D. If they have long tenures, these executives may prove to be as important to postacquisition success as are more highly ranked top executives. - Not stated in passage
E. Postacquisition success is unlikely if these executives are retained. - Out of scope/ Passage does not mention about failure of acquisition if such employees are retained, instead it talks about success if top executives are retained.

Question Type - Supporting Idea
Answer - (C)
Line No. 7 to 10 states - "Furthermore, existing research suggests that retaining the highest-level top executives, such as the CEO (chief executive officer) and COO (chief operating officer), is related more positively to post acquisition success than retaining lower-ranked top executives."
[Reveal] Spoiler:
C


(Book Question: 428)
The resource-based view, as described in the passage, is based on which of the following ideas?
A. The managerial skills of top executives become strongest after the first five years of their tenure. - Out of Scope
B. Company-specific knowledge is an important factor in the success of an acquisition process.
C. The amount of nontransferable knowledge possessed by long-tenured top executives tends to be underestimated. - RBV does not underestimate
D. Effective implementation of an acquisition depends primarily on the ability of executives to adapt to change. - UEP View
E. Short-tenured executives are likely to impede the implementation of a successful acquisition strategy. - RBV talks about positive inputs from retained top executives and not ill-effect of short tenured eecutives

Question Type - Evaluate
Answer - (B)
My query with the ans is, it mentions success of an acquisition process - (Acquisition process/ Implementation/ Post acquisition) Such differences would matter if solving a 700+ lvl question
Line 21 says - The resource-based view (RBV) suggests that keeping acquired company top executives with longer organizational tenure would lead to more successful outcomes, as those executives have idiosyncratic and nontransferable knowledge of the acquired company that would be valuable for the effective implementation of the acquisition.
Line No 45 - While longer tenured top executives may have trouble adapting to change, it appears that their perspectives and knowledge bases offer unique value after the acquisition.
[Reveal] Spoiler:
B


(Book Question: 429)
The passage suggests that Bergh and a proponent of the upper echelons perspective would be most likely to disagree over which of the following?
A. Whether there is a positive correlation between short organizational tenure and managerial adaptability
B. Whether there is a positive correlation between long organizational tenure and the acquisition of idiosyncratic and nontransferable knowledge
C. Whether adaptability is a useful trait for an executive who is managing an acquisition process
D. Whether retaining less-tenured top executives of an acquired company is an optimal strategy for achieving postacquisition success
E. Whether retaining highest-level top executives of acquired companies is more important than retaining lower-ranked top executives

Question Type - Evaluate
Answer - D
The justification here is Bergh discussed only about the (tenure = knowledge) of the executive in his study,
whereas UCP discussed only about (tenure = adaptability)
Hence an option talking about adaptability or knowledge is out - A / B / C
Option (E) talks about highest ranked and lower ranked executives and not their tenures. - Out
After elimination - Answer is D - and it also follows the flow of the question - disagreement is on optimal acquisition strategy.

Now my query in question (2) solidifies - Question 2 states Implementation process whereas this question states post acquisition.
It is a nimble difference but if noticed can alter the answer for a specific question.
[Reveal] Spoiler:
D


(Book Question: 430)
According to the passage, prior to Bergh’s study, research on the role of top executives of acquired companies in business acquisition success was limited in which of the following ways?
A. It did not address how the organizational tenure of top executives affects postacquisition success.
B. It did not address why some companies have longer-tenured CEOs than others.
C. It did not consider strategies for retaining long-tenured top executives of acquired companies.
D. It failed to differentiate between the contribution of highest-level top executives to postacquisition success and that of lower-ranked top executives.
E. It underestimated the potential contribution that lower-level top executives can make to postacquisition success.

Question type - Inference
Answer - A
Justification - Line no. 12 - "two limitations. First, the focus on positional rank does not recognize the variation in length of service that may exist in top executive posts across companies"
[Reveal] Spoiler:
A


egmat mikemcgarry ankurgupta03 sayantanc2k
_________________

Good luck
=========================================================================================
"If a street performer makes you stop walking, you owe him a buck"
"If this post helps you on your GMAT journey, drop a +1 Kudo "


"Thursdays with Ron - Consolidated Verbal Master List - Updated"

Kudos [?]: 91 [3], given: 94

Manager
Manager
User avatar
Joined: 23 Sep 2013
Posts: 105

Kudos [?]: 26 [0], given: 80

Concentration: Strategy, Marketing
WE: Engineering (Computer Software)
Reviews Badge
In an effort to explain why business acquisitions often fail, schola [#permalink]

Show Tags

New post 29 Dec 2016, 05:57
(Book Question: 430)
According to the passage, prior to Bergh’s study, research on the role of top executives of acquired companies in business acquisition success was limited in which of the following ways?
A. It did not address how the organizational tenure of top executives affects postacquisition success.
B. It did not address why some companies have longer-tenured CEOs than others.
C. It did not consider strategies for retaining long-tenured top executives of acquired companies.
D. It failed to differentiate between the contribution of highest-level top executives to postacquisition success and that of lower-ranked top executives.
E. It underestimated the potential contribution that lower-level top executives can make to postacquisition success.

Question type - Inference
Answer - A
Justification - Line no. 12 - "two limitations. First, the focus on positional rank does not recognize the variation in length of service that may exist in top executive posts across companies"

You're quoting the wrong section here. Limitation 1 as stated in the passage talks about the variation in length of service that may exist in top executive posts across companies....it talks about inter-companies variance in the respective tenures.

It was the theoretical explanations regarding the second Limitation (pertaining to length of service ) that had opposing view...Berjh collected data for 5 years and hence was able to support one theory and addressed how the organizational tenure of top executives affects post-acquisition success i.e. length of tenure is directly proportional to the post acquisition success(same as option A). Hence he addressed Limitation 2.

Regards
SR

Kudos [?]: 26 [0], given: 80

Manager
Manager
avatar
B
Joined: 04 Feb 2017
Posts: 57

Kudos [?]: 7 [0], given: 45

GMAT ToolKit User Reviews Badge CAT Tests
Re: In an effort to explain why business acquisitions often fail, schola [#permalink]

Show Tags

New post 26 Aug 2017, 08:11
Solved all correctly but I took almost 10.5 minutes.

Guys, any idea to tackle such kind of passage in a minimum of time duration?

Regards,
Pratik

Kudos [?]: 7 [0], given: 45

Intern
Intern
avatar
B
Joined: 12 Dec 2016
Posts: 39

Kudos [?]: 3 [0], given: 43

Re: In an effort to explain why business acquisitions often fail, schola [#permalink]

Show Tags

New post 12 Oct 2017, 21:23
keats wrote:
Got all correct in 11 minutes. I took quite some time to solve the last question but fortunately, I got it right!

Does anyone has any sort of tips on how to attack such sort of passages with 100% accuracy in minimum time. The case with me is, although I get 100% correct, I take more than allotted time to solve the question. Any views mikemcgarry MBAPrepCoach daagh sayantanc2k


Strategy: Time per passage = No. of questions * 2 mins. This includes reading time. 4 questions, 8 mins max.
Short passages 2.5-3 mins reading. Long passages 3:5-4 mins reading

1. Read the first question before reading the passage
2. For long passages, take notes (you shouldn't have to refer to these notes - they help with comprehension) and make sure you understand the first paragraph as this contains most of the info. Then identify the main point of the first paragraph.
3. Pick up pace as you read the rest of the passage, focusing on the first two sentences of each paragraph as they are bound to be topical sentences.
4. Don't get bogged down in details and specifics.
5. Look out for Big Results, unexpected outcomes and surprising twists
6. Identify the Point of the passage and then proceed to the questions.
7. You should be able to answer general questions without going back to passage
8. For specific questions, refer to relevant text in the passage and read the sentences surrounding that text and make sure you understand it, then start Process of Elimination.
9. JUSTIFY EVERY WORD in the correct answer

Kudos [?]: 3 [0], given: 43

Re: In an effort to explain why business acquisitions often fail, schola   [#permalink] 12 Oct 2017, 21:23
Display posts from previous: Sort by

In an effort to explain why business acquisitions often fail, schola

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.