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23 March, 09:45

A primary reason for a firm to pursue an acquisition is to:

a. avoid increased government regulation.

b. exit a hyper-competitive market.

c. achieve greater market power.

d. achieve greater financial returns in the short run.

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Answers (1)
  1. 23 March, 10:09
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    c. achieve greater market power.

    Explanation:

    Acquisitions to meet a market power objective generally involve buying a supplier, a competitor, a distributor, or a business in a highly related industry. Though a number of firms may feel that they have an internal core competence, they may be unable to exploit their resources and capabilities because of a lack of size.
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