Asked by
Carter Sintek
on Dec 01, 2024
Verified
A business combination can expand the value of combining firms due to the effect of economies of scale.
Economies of Scale
Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.
Business Combination
A transaction or event where two or more companies merge or one company acquires another to consolidate business operations.
- Understand the strategic reasoning behind mergers and acquisitions, encompassing synergy, market expansion, and diversification.
- Gain insight into the fiscal impacts and investor outcomes of mergers and acquisitions.
Verified Answer
CS
Learning Objectives
- Understand the strategic reasoning behind mergers and acquisitions, encompassing synergy, market expansion, and diversification.
- Gain insight into the fiscal impacts and investor outcomes of mergers and acquisitions.
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