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3 years ago

7

Explain the nature of mergers and acquisitions and the reasons why they may be used as a form of strategy development.

1 answer:

Drupady [299]3 years ago

3 0

Answer:

Mergers and acquisitions consist of either joining two or more firms, or having one firm acquire another firm.

The rationale behind a merger or acquisiton is always strategic: a merger or an acquisition is carried out with the goal of improving the economic position and performance of the firms involved.

Some business strategies that can be implemented by a merger or acquisition are:

Horizontal integration: companies that sell similar products merge in order to join forces and expand their market reach.
Vertical integration: companies in the same industry, but that sell different products (for example, one company sells cars and the other sells bikes) merge in order to expand their market share.
Conglomerate formation: companies in different industries join in order to expand their markets even more.

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Suppose Russia and Sweden each produce only paper and cars. Russia can produce 8 tons of paper or 4 million cars each year. Swed

azamat

Answer:

Attached grap with point A and B.

Explanation:

Russia will produce the cars as their production has te lower opportunity cost:

(Note: Opportunity cost is the amount of production resigned for the current output)

<u>Sweden pportunity cost for production car: </u>

25 ton of papper / 5 m cars = 5 tons per millon of cars

<u>Russia pportunity cost for production car: </u>

8 ton of papper / 4 m cars = 2 tons per millon of cars

With the trade set at 2 millon car for 6 tons of paper we get the following

Sweden produce 25 tons - 6 traded = 19

and receive 2 millon car

Russia produce 4 millon car - 2 traded = 2

and receive 6 tons of pappers

8 0

3 years ago

Suppose that Xtel currently is selling at $66 per share. You buy 500 shares using $20,000 of your own money, borrowing the remai

hram777 [196]

Answer:

The percentage loss will be "-9.08%". The further explanation is given below.

Explanation:

The given values are:

Invested amount

= 20,000

Price of purchase

= $66

Total number of shares

= 500

The borrowed amount will be:

= $(500\times 66)-20000$

= $13,000$

When the price increase to 69.63, the gain will be:

= $69.63-66$

= $3.63$ ($)

The total gain will be:

= $3.63\times 500$

= $1815$

Increase in percentage will be:

= $\frac{1815}{20,000}\times 100$

= $9.08$ %

Whereas if price stays quite well at $66, there is really no increase, so the percentage growth would be 0%.

If the price declines toward a loss of 62,37 per share:

= $62.37-66$

= $-3.63$

Now,

The total loss will be:

= $-3.63\times 500$

= $-1815$

The percentage loss will be:

= $\frac{-1815}{15,000}$

= $-9.08$ (%)

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3 years ago

flora Quinton is buying a new air compressor for her auto repair shop. it sells for $1,299. She makes a down payment of $199 and

Luba_88 [7]

I believe the answer is $1,100

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2 years ago

How can we build up strong analytical skill discuss

yan [13]

Answer:

hope help you

Explanation:

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Read more. An important part of being analytical involves being alert and remaining stimulated. ...

Build your mathematical skills. ...

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Join a debate club. ...

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2 years ago

A project has an assigned beta of 1.24, the risk-free rate is 3.8%, and the market rate of return is 9.2%. what is the project's

lianna [129]

<span>the answer for this question is 10.50%</span>

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2 years ago