Which of the following encouraged firms to develop through internal R&D rather than through M&A in the 20ᵗʰ century?
A)Lower wage costs for internal labor compared to merged or acquired labor
B)Faster results obtained with R&D
C)Federal antitrust policies
D)Lack of financial capital to engage in M&A
E)High transactions costs associated with M&A activity.

Question

Quizplus · Accepted Answer

Federal antitrust policies encouraged firms to avoid merging with or acquiring competitors and instead focus on internal research and development to achieve growth. This was due to concerns about monopoly power and anti-competitive behavior that could result from excessive consolidation in certain industries.

Which of the Following Encouraged Firms to Develop Through Internal