When a firm undertakes a merger in order to eliminate redundant functions or increase market share, this is an example of

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When a firm undertakes a merger in order to eliminate redundant functions or increase market share, it is a strategic merger. The primary goal is to improve the competitive position of the company and achieve greater efficiency and economies of scale through consolidation. Financial mergers, hostile takeovers, and friendly mergers may also involve some strategic considerations, but the focus is different. Financial mergers are primarily driven by financial gains, such as increased cash flow or reduced debt. Hostile takeovers involve the acquisition of a target company against its will, often for the purpose of gaining control or access to valuable assets. Friendly mergers are negotiated between the companies involved to achieve mutually beneficial goals, such as diversification or expansion into new markets.

When a Firm Undertakes a Merger in Order to Eliminate