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Q: Given the situations below, (a) discuss with reasons whether they fall into the category of applied or basic research, and (b) explain with reasons, who will conduct the research? Companies are very interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For example, Gencore Industries manufacturing asphalt plants for road construction acquired Ingersoll-Rand in 1996, and later acquired yet another company engaged in the business of food processing. Such acquisitions are claimed to work miracles. However, given the volatility of the stock market and the slowing down of business, many companies are not sure whether such acquisitions involve too much risk. At the same time, they also won- der if they are missing out on a great business opportunity if they fail to take such risk. Some research is needed here!