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Firms Will Merge or One Firm Will Acquire Another for All

Question 5

Multiple Choice

Firms will merge or one firm will acquire another for all but which of the following reasons:


A) one large firm has a cost advantage over two smaller firms.
B) synergies involved between the two firms.
C) to enter a new market.
D) to diversify risk.
E) one large firm can sell more than two smaller firms.

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