The Reasons Why a Company May Choose External Growth by Merger

question 26

Multiple Choice

The reasons why a company may choose external growth by merger over internal growth include ____.

• A) economies of scale
• B) more rapid growth
• C) tax considerations and rapid growth
• D) economies of scale, tax considerations, and more rapid growth

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Definitions:

Revenue-maximizing Price

The price point at which a business can generate the highest total revenue, considering the impact of price changes on sales quantity.

Football Tickets

Admissions to attend a football game, typically purchased and used to gain entry to a stadium where the game is played.

Demand Function

A mathematical expression that describes the relationship between the quantity demanded of a good and its determining factors, such as price, income, and prices of related goods.

Stadium Capacity

The maximum number of spectators that a stadium can accommodate, often determined for safety, comfort, or regulations.