Question

A major problem with buying other companies in order to gain access to their product lines is that the acquiring firm may lose its own ability to innovate. True or false?

Answer 1

Answer is "FALSE"

Step-by-step explanation:

As , when a company buys another company there is a strong Knowledge Transfer you can learn about running the business from the current owner, which helps you to gain an insight about their experiences and also use their expertise as how they worked previously on their existing products and you can then grab ideas and follow procedures and use them for your own innovation (The acquiring firm).