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.

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Definitions:

Work Ethic

A set of values based on the importance of doing work and reflected in a commitment to hard work and diligence.

Baby-Boomer

A person born during the demographic post-World War II baby boom, typically identified as someone born between 1946 and 1964.

Differentiation

The process of distinguishing a product, service, or business in the market by developing unique features, benefits, or capabilities.

Communication

The process by which information is exchanged between individuals through a common system of symbols, signs, or behavior.