An economic advantage of a business combination includes
A) Utilizing duplicative assets.
B) Creating separate management teams.
C) Coordinated marketing campaigns.
D) Horizontally combining levels within the marketing chain.

Question

Quizplus · Accepted Answer

Coordinated marketing campaigns can lead to increased efficiency and reduced costs due to economies of scale. Utilizing duplicative assets (A) can lead to cost savings but may also result in reduced flexibility and innovation. Creating separate management teams (B) can lead to increased bureaucracy and costs. Horizontally combining levels within the marketing chain (D) may reduce competition and limit consumer choice, potentially leading to decreased efficiency and increased costs in the long run.

An Economic Advantage of a Business Combination Includes