Name and explain the main economic advantage of business combinations. Regarding business combinations, what is the difference between “legal merger” and “legal consolidation”?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter15: Oligopoly And Strategic Behavior
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Name and explain the main economic advantage of business combinations.

Regarding business combinations, what is the difference between “legal merger” and “legal consolidation”?

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A business combination is an exchange wherein the acquirer gets control of another business. Business combinations are a typical way for organizations to fill in size, as opposed to becoming through natural exercises.

 

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