What is a potential advantage of a takeover?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

A potential advantage of a takeover is that it provides access to the resources of the acquired business. This can include tangible resources like financial assets, physical inventory, and facilities, as well as intangible resources such as specialized knowledge, technology, or a skilled workforce. By acquiring these resources, the buying business can improve its operational capabilities, enhance its product offerings, and potentially achieve economies of scale. This can lead to greater efficiency, innovation, and competitive advantage in the market. Access to these resources may also allow the acquiring company to enter new markets or segments that were previously out of reach, fostering growth and expansion opportunities.

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