When Is Diversification a Good Reason for a Merger

question 32

Essay

When is diversification a good reason for a merger?

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Definitions:

Social Trap

Situations in which actions that produce rewards for one individual or group in the short term lead to negative consequences for all in the long term.

Fuel-Inefficient Car

A vehicle that consumes a high amount of fuel relative to the distance it travels, reflecting poor energy efficiency.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, such as carbon dioxide and methane, contributing to global warming and climate change.

Bystander Effect

An occurrence in social psychology where the presence of others decreases an individual's likelihood to aid someone in need.