Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Question
Chapter 29, Problem 3CQ
Summary Introduction
To explain: Reasons for diversification not being good for mergers.
Diversification:
Diversification is an action through which a company acquires the controlling interest of another company in order to get the benefit of acquiring another company by expanding its business. It is one of the risk management techniques. It is a strategy to enter into the new market by creating new products or by expanding the product line.
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