TrueFalsePartnership structures are commonly used for the following type of businesses otherthan:manufacturing firmslaw firmsconsulting firmsO accounting firms Time Taken:0:50:01Anthony Annoreno: Attempt 1Commercial banks are critical to an economy for the following reasons other than:O they move funds through timethey regulate the financial marketsthey help spread out riskO they efficiently take in deposits and make loans

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Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter22: Getting Divisions To Work In The Firm’s Best Interests

Section: Chapter Questions

Problem 8MC

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One CEO justified the merger of his soft-drink company with a machine tool company inthe following manner. This is a great merger. First the products are unrelated. This out company’searnings volatility is likely to decrease. Second, our management team has proven that we are bettermanagers than the former management team of the tool company, and this we are likely to discovernew way to create and capture value within the tool company. Evaluate this explanation for themerger.
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