A Corporation That Owns a Chain of Pastry Shops on the West

question 8

Essay

A corporation that owns a chain of pastry shops on the west coast has seen a decrease in revenue in recent months due to an increase in the price of flour.The company is considering merging with another company in order to combine resources and save on costs.Which type of merger would be most beneficial for the corporation and why?

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Definitions:

Crowd Out

A phenomenon where increased public sector spending reduces or eliminates private sector spending in the same market, often through higher interest rates or available financial resources.

Taxes

are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Domestic Output

The total value of all goods and services produced within a country's borders in a specific time period, often referred to as Gross Domestic Product (GDP).

Industrially Advanced Countries

Nations with highly developed economies characterized by significant industrial growth, technological advancement, and high standard of living.