Why would a company decide to acquire another company

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Reference no: EM132984936

Problem 1: A conglomerate merger is a merger between

a. None of these are correct
b. Competitors
c. Firms that are involved in totally unrelated business activities
d. Businesses involved in the same stage of production

Problem 2: According to Ovtchinnikov (2013) industry deregulation tends to occur when

a. None of these are correct
b. Industries experience poor performance
c. Industries experience technological changes
d. Industries experience excellent performance

Problem 3: Why would a company decide to acquire another company instead of growing through internal expansion?

a. All of these are correct
b. To prevent competitors from responding quickly and capturing grater market share
c. Able to acquire capital at higher cost
d. Able to acquire capital at higher returns

Reference no: EM132984936

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