A primary reason for a firm to pursue an acquisition is to:
A) avoid increased government regulation.
B) achieve greater market power.
C) exit a hyper-competitive market.
D) achieve greater financial returns in the short run.

Question

Quizplus · Accepted Answer

Acquisitions are often pursued to achieve greater market power by increasing the firm's market share, reducing competition, or gaining access to new markets or resources.

A Primary Reason for a Firm to Pursue an Acquisition