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Papa Ray Owns a Pizzeria

question 44

Essay

Papa Ray owns a pizzeria. He is more efficient at making pizza than anyone he could hire. Does this mean that he should make all of the pizzas himself?


Definitions:

Synergy

Notion that a combined firm is worth more than the two firms are individually.

Merger

Agreement in which two or more firms combine to form one company.

Acquisition

Agreement in which one company purchases another.

Leverage

Increasing the rate of return on funds invested by borrowing funds.

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