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List and describe three advantages of a divisional structure.
Conglomerate Mergers
Mergers between firms that operate in unrelated business activities, aiming to diversify product offerings and risks.
Herfindahl-Hirschman Index
An economic indicator that measures the level of concentration and competition within an industry.
Economies of Scale
Refers to the cost advantage experienced by firms when they increase their level of production. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced.
Oligopolistic
Pertaining to an oligopoly, a market structure with a few firms dominating the industry, leading to limited competition.
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