When a Firm Undertakes a Merger in Order to Eliminate

question 155

Multiple Choice

When a firm undertakes a merger in order to eliminate redundant functions or increase market share, this is an example of

• A) financial merger.
• B) hostile takeover.
• C) friendly merger.
• D) strategic merger.

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Definitions:

Money Supply

The aggregate financial assets at a specific time in an economy.

Price Rise

An increase in the cost of goods or services, often reflecting factors like inflation, increased production costs, or higher demand.

Real Factors

Real factors typically refer to tangible inputs and conditions affecting economic outcomes, such as resources, technology, and workforce skills, as opposed to financial inputs.

Quantity Theory

An economic theory proposing a direct relationship between the amount of money in an economy and the level of prices of goods and services.