Which of the Following Is a Not a Reason for a Business

question 18

Multiple Choice

Which of the following is a not a reason for a business combination to take place?

• A) Cost savings through elimination of duplicate facilities.
• B) Quick entry for new and existing products into domestic and foreign markets.
• C) Diversification of business risk.
• D) Vertical integration.
• E) Increase in stock price of the acquired company.

---

Definitions:

Male Facial Hair

Hair that grows on the face of males, primarily after puberty, which can vary in extent and style across different cultures and individuals.

Strategy Implementation

The execution of planned actions and tactics to realize organizational goals and strategies.

Mergers

The combination of two or more companies into a single entity, typically to achieve synergies or improve competitive positioning.

Acquisitions

The process of one company purchasing most or all of another company's shares to gain control of that company.