9. A major risk in acquiring innovation is that:

1. Newly acquired workers will be less innovative
2. There are usually poor choices available
3. If overused, the company will lose its internal R&D capability
4. The top management team may object and demand a different strategy

12. What happens immediately to the stock price of the firms in

an acquisition?

1. Acquiring firms stock price rises; acquired firm falls
2. Both acquired and acquiring stocks rise
3. It depends on the economy of the country
4. Acquiring firm stock falls; acquired firm rises