A firm that answers yes to the question, "If I set up a low-cost business, will it generate synergies with my existing business?" its next action should probably be to:
A)Watch out for rivals but not take them on.
B)Switch to selling solutions.
C) Merge with or take over rivals.
D) Merge with or take over rivals

Question

A firm that answers yes to the question, "If I set up a low-cost business, will it generate synergies with my existing business?" its next action should probably be to:
A)​Watch out for rivals but not take them on.
B)​Switch to selling solutions.
C) ​Merge with or take over rivals.
D) ​Merge with or take over rivals

Quizplus · Accepted Answer

A low-cost business can generate synergies with an existing business by providing a new market or customer base, or by offering complementary products or services. Merging with or taking over rivals can help a firm to consolidate its market position and reduce competition.

A Firm That Answers Yes to the Question, "If I