Why Might a Firm Acquire Another Company

question 40

Multiple Choice

Why might a firm acquire another company?

• A) Mergers guarantee future profitability.
• B) Acquisitions allow a company to enter new markets and improve competitiveness.
• C) Acquisitions are always less expensive than creating new products.
• D) Governments regulate acquisitions less than they do mergers.

Recognize the role of social movements in pursuing environmental justice.

Understand the concept of ecological footprint and its relevance to environmental sociology.

Identify key figures and their contributions to the field of psychotherapy.

Understand the concept and implications of the placebo effect in medical treatment.

---

Definitions:

Laffer Curve

A theory that suggests there exists an optimal tax rate which maximizes government revenue without deterring economic growth, demonstrating the trade-off between tax rates and taxable income.

Tax Rates

Tax rates are the percentages at which an individual or corporation is taxed, varying by income level, economic activity, or type of good.

Tax Revenues

The financial earnings governments receive through taxing.

Discretionary Economic Policy

Economic policies that are based on the judgment and decisions of policymakers rather than set by predefined rules or automatic mechanisms.