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Why Might a Firm Acquire Another Company

Question 42
Multiple Choice
arrowQuestion 42arrow
Multiple Choice

Why might a firm acquire another company?

A) Mergers guarantee future profitability.
B) Acquisitions allow a company to enter new markets and improve competitiveness.
C) Acquisitions are always less expensive than creating new products.
D) Governments regulate acquisitions less than they do mergers.

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