Business combinations are used by firms to externally expand in order to increase ________.

Question

Quizplus · Accepted Answer

Business combinations are a way for firms to acquire other businesses and their resources, including production capacity. This allows the acquiring company to increase their own production capacity, which can ultimately lead to increased revenue and profits. A and B are incorrect choices as they do not directly relate to the purpose of business combinations, and D is not always a desired outcome of external expansion.

Business Combinations Are Used by Firms to Externally Expand in Order