One Reason That a Firm May Choose to Merge or Acquire

question 153

True/False

One reason that a firm may choose to merge or acquire another company would be diversity with diversify of products or services.

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Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Profit Margin

A ratio or percentage that measures the profitability of a business, calculated by dividing net income by revenue.

Investment Center

A segment or area of a business responsible for its own revenues, expenses, and investment in assets, often evaluated on its return on investment.

Authority

The ability or prerogative to issue commands, decide on matters, and compel adherence.