___________ May Be Necessary Because Acquisitions Create a Situation in Which

question 1

Multiple Choice

___________ may be necessary because acquisitions create a situation in which the newly formed form has duplicate organizational functions such as sales, manufacturing, distribution, and human resource management.

• A) Management buyout
• B) Leveraged buyout
• C) Downsizing
• D) Downscoping

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Definitions:

Optimum Efficiency

The most favorable condition for the maximal performance and least waste of resources.

Marginal Revenue

The financial gain achieved through the sale of one more unit of a good or service.

Average Total Cost

The cost per unit of output, calculated by dividing the total cost of production by the total quantity of output.

Marginal Cost

The cost added by producing one additional unit of a product or service, crucial for making efficient production and pricing decisions.