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Some firms might purchase other corporations in the hopes of making a profit. They might buy cheap and sell higher. Some firms might also buy other corporations to buy up the competition in a particular industry.

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Q: Why do firms purchase of other corporations Are they simply paying too much for the acquired corporation?
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The most common characteristic of a corporation is financial responsibility. Corporations have limited liability which means that the corporation is responsible for paying it's debts. The owners or shareholders are personally shielded from that responsibility.


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Why might a closely held corporation choose to remain private and why might it choose to be public traded?

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