• Card 30 / 40: Mergers and acquisitions can often result in social benefits. What might be considered a social benefit of an M&A?
    A) It may provide better management or technical skill on underused assets.
    B) It may result in economies of scale.
    C) It can discourage managers in behaving in ways that fail to maximize profits.
    D) All of these answers

    Answer:
    D) All of these answers

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Explanation:

Please see subunit 4.2. The Free Dictionary's article on "Mergers and Acquisitions (M&A)" cites the benefits and concerns of mergers and acquisitions. Federal and state laws regulate M&As to ensure that a newly merged or acquired firm does not result in unfair competition. Conversely, M&As often result in a number of social benefits that include "better management or technical skill to underused assets." M&As can also "result in economies of scale and scope that reduce costs, improve quality, and increase output." Finally, M&A's can "discourage company managers from behaving in ways that fail to maximize profits."

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Negotiations & Conflict Management BUS210

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Attribution:  Charles Jumper. Negotiations & Conflict Management (The Saylor Academy 2014), http://www.saylor.org/courses/bus403/
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