One of the potential problems associated with acquisitions is that the size of the firm may exceed the economies of scale generated by the acquisition.

Name: One of the potential problems associated with acquisitions is that the size of the firm may exceed the economies of scale generated by the acquisition.
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Question

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If a firm becomes too large after an acquisition, it may become less efficient and experience diseconomies of scale, leading to higher costs and reduced profitability.

One of the Potential Problems Associated with Acquisitions Is That