Acquisitions Are Instances of Corporate Development Where One Corporate Entity

question 3

True/False

Acquisitions are instances of corporate development where one corporate entity internalizes another entity, which subsequently ceases to exist independently

---

Definitions:

Economies of Scale

Economies of scale refer to the cost advantage that arises with an increased output of a product, as fixed costs are spread out over more units of production, leading to a decrease in the per-unit cost.

Diseconomies of Scale

The phenomenon where production costs increase as a firm's production scale becomes too large, leading to inefficiencies.

Diseconomies of Scale

The phenomenon where production costs increase as a company grows larger, leading to reduced efficiency.

Bureaucratic

Pertaining to a system of administration characterized by strict policies, procedures, and hierarchy.