(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."
(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 eecutivesQuestion 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.(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 /
COption (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.
(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"
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