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A multinational enterprise recently purchased a large company located in a different country. When introducing the concept of governance to the new acquisition, it is MOST important that executive management recognize:
D. the impact of cultural changes is the most important thing that executive management should recognize when introducing the concept of governance to a new acquisition located in a different country. Cultural differences can have a significant impact on how governance is perceived and implemented in different regions and countries. Executive management should be aware of these differences and take them into consideration when designing governance policies and procedures for the new acquisition. Failure to recognize cultural differences can lead to miscommunications, misunderstandings, and resistance to new governance policies, which can ultimately undermine the success of the acquisition.
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