3.2.2 Flashcards

1
Q

merger

A

two firms joining together

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2
Q

merger example

A

disney and pixar

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3
Q

takeover

A

one firm buys another

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4
Q

takeover example

A

kraft and cadbury

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5
Q

reasons for mergers and takeovers

A

synergy
cheaper
economies of scale
reduce competition

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6
Q

problem with rapid growth

A

change
control loss
shortage of resources

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6
Q

synergy

A

1 +1 = 3

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