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    Foundations of Financial Management Study Set 4
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    Exam 20: External Growth Through Mergers
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    The Elimination of Overlapping Functions and the Meshing of Two
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The Elimination of Overlapping Functions and the Meshing of Two

Question 3

Question 3

Multiple Choice

The elimination of overlapping functions and the meshing of two firms' strong areas or products creates the managerial incentive for mergers known as


A) horizontal integration.
B) vertical integration.
C) synergy.
D) the portfolio effect.

Correct Answer:

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