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You work for ClassicToys, a corporation that is considering the acquisition of a toy manufacturer. The senior vice president for development asks you to head a task force to investigate six companies that are potential candidates. You assemble a team composed of representatives from the relevant functional areas. Pertinent data are collected from public sources because of the sensitive nature of the project. You examine all of the following: company annual reports; articles in business journals, trade magazines, and newspapers; financial analysts' assessments; and company advertisements. The team members then develop summary profiles of candidate firms based on the characteristics gleaned from the sources. The final report highlights the opportunities and problems that acquisition of the target firm would bring to all areas of the business.
Based on the situation given above, justify clearly whether basic research or applied research is used by ClassicToys. In addition, explain FOUR (4) disadvantages that you and your team could possibly encounter in this research.
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