Large business combinations in Japan are normally carried out through reciprocal ownership of common stock. These networks, or keiretsu, involve a large number of diversified companies centered around a large bank, industrial firm, or trading firm. One of the main benefits of this structure is argued to be

Question

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The reciprocal ownership of common stock in keiretsu networks can provide a reduction in the costs of financial distress because these companies are interconnected and can provide support to each other during times of financial difficulty. This can save the companies money and help them to avoid bankruptcy.

Large Business Combinations in Japan Are Normally Carried Out Through