Final answer:
Two companies should not merge if a bicultural audit determines that they have substantially different cultures.
Step-by-step explanation:
The statement is True. Two companies should not merge if a bicultural audit determines that they have substantially different cultures. This is because culture plays a crucial role in the success or failure of a merger or acquisition.
A bicultural audit involves assessing the cultural compatibility between two organizations. It examines factors such as communication styles, leadership styles, organizational values, and work norms. If the audit reveals significant differences in these areas, it indicates that the companies have different cultures, which can lead to conflicts and challenges in integrating their operations.
For example, if one company has a hierarchical and formal culture, while the other has a more flexible and collaborative culture, it may be difficult to align their management practices and decision-making processes. This can hinder effective collaboration, impede decision-making, and create resistance among employees.