In a Merger

question 98

Multiple Choice

In a merger:

• A) one firm buys controlling interest in another firm.
• B) two firms agree to integrate their operations on a relatively coequal basis.
• C) two firms combine to create a third separate entity.
• D) one firm breaks into two firms.

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Definitions:

Functional Organizations

A type of organizational structure that groups employees based on their specialized roles or functions.

Functional Expertise

The specialized knowledge or skills in a specific field or function, contributing to organizational success.

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale.

Function Based Divisions

Organizational structuring where a company is divided into departments based on functions such as marketing, finance, or production.