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A Common Justification for Mergers of Competitors Is the Potential

question 83

Essay

A common justification for mergers of competitors is the potential for cross-selling opportunities it would provide. Comment on the challenges that might be involved in making such a marketing strategy work.


Definitions:

Insurance Settlement

The payment made by an insurance company to fulfill its obligation under an insurance policy.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans received from the country's central bank's discount window.

Annuity

An investment vehicle offering a steady flow of payments to someone, often employed as a revenue stream for retired individuals.

Cash Flows

The entire scope of capital flow inbound and outbound of an enterprise, distinctly affecting its cash availability.

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