Explore BrainMass

Consolidating effect of mergers and acquisitions

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Firms have more than one option for diversifying; among these options are the following: corporate entrepreneurship, strategic alliances, and mergers and acquisitions. Mergers and acquisitions can have a consolidating effect in the industry, and may force other industry players to merge. When a company 'buys' another company with a cash transaction, a newly legal entity is formed.

T or F

© BrainMass Inc. brainmass.com December 20, 2018, 10:41 am ad1c9bdddf

Solution Preview

This is true. The last sentence makes a really interesting point, and that's because many people don't know that the Federal Trade Commission (FTC) actually has veto power over acquisitions ...

Solution Summary

This solution discusses the mergers and acquisitions question listed. A thorough explanation is provided.