Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:
Assertion: A merger or acquisition is identified with job losses, restructuring and the imposition of a new corporate culture and identity.
Reasoning: Companies often pay undue attention to the short term legal and financial considerations involved in a merger or acquisition, and neglect crucial HR issues related to corporate identity and communication, which in turn impact the worker's morale and productivity
Options:
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct.
Correct Answer:
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Explanation:
Human resources issues: A merger or acquisition is identified with job losses, restructuring and the imposition of a new corporate culture and identity. This can create uncertainty, anxiety and resentment among the company's employees. Companies often pay undue attention to the short term legal and financial considerations involved in a merger or acquisition, and neglect crucial HR issues related to corporate identity and communication, which in turn impact the worker's morale and productivity. These HR issues are crucial to the success of M&As.