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Rizzo's Is a New,well-Financed Manufacturing Firm with High Fixed Costs

Question 5

Multiple Choice

Rizzo's is a new,well-financed manufacturing firm with high fixed costs.The firm has a strong demand,efficient operations and distribution systems,and low taxes.Rizzo's is most apt to acquire a target firm that will provide


A) vertical integration.
B) economies of scale.
C) unused debt capacity.
D) marketing gains.
E) net operating losses.

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