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Merging of two companies provides certain benefits of scale, because the support organization can be reduced. In addition, the two companies together also have combined intellectual properties, patents, production power and distributive network.

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What is a merger in business finance?

A merger combines two companies or corporations into a single structure. Often a smaller company will become a subsidiary of a larger company, or two large companies (e.g. Chrysler and Daimler-Benz from 1998 to 2007) will combine to gain some advantage in finance or competition.


What is it called when two or more companies work together?

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What typeof merger does the passage describe?

A merger is when two companies are selling different produces. It happens when the companies are on different levels.


Are 401k loans paid off when there is a merger of two companies?

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the smaller companies are put out of business the smaller companies are put out of business


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The merger between the two corporations fell through.Many companies create mergers when their services overlap.


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A merger.


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When two companies combine to form a single company, it is called an amalgamation or merger.


Can a merger be considered a means of raising additional equity capital?

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What is the Merger of companies at different stages of production?

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