How are acquisitions good for society?

Question

Quizplus · Accepted Answer

An acquiring company may bring new resources, management expertise, or other strategic advantages to an acquired company. This can result in improved efficiency and productivity, which benefits society through increased output, lower prices, and more jobs.

Answer: A
 Acquisitions can eliminate barriers to entry, making it easier for new competitors to enter a market. This can increase competition and lead to better products, lower prices, and more innovation, all of which benefit society.

Answer: E
 In some cases, an acquisition may lead to higher costs for the acquiring company, which may then pass on those costs to consumers in the form of higher prices. This can harm society by reducing consumer welfare and limiting access to certain products or services.

Choice B and D are incorrect because acquisitions typically require government oversight and can reduce competition, which can harm society by limiting consumer choice and increasing market power for a few dominant companies.

How Are Acquisitions Good for Society