Consolidating effect of mergers-acquisitions

Reference no: EM1343759

Firms have more than one option for diversifying; among these options are the following: corporate entrepreneurship, strategic alliances, and mergers and acquisitions. Mergers and acquisitions can have a consolidating effect in the industry, and may force other industry players to merge. When a company 'buys' another company with a cash transaction, a newly legal entity is formed.

T or F

Reference no: EM1343759

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