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 reduces the costs of financial distress, which is one of the main benefits of this structure. Other benefits may include monopolistic control of economic segments, large-scale diversification, and greater efficiency in management, but these are not specifically mentioned as the main benefit in the given context.

Large Business Combinations in Japan Are Normally Carried Out Through