What are four advantages of business combinations compared to internal expansion?
belongs to book: ADVANCED ACCOUNTING|Debra C.jeter, Paul K.Chaney|7th edition| Chapter number:1| Question number:3
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- Management is provided with an established operating unit with its own experienced personnel, regular suppliers, productive facilities and distribution channels
- Expanding by combination does not create new competition
- Business combinations can permit rapid diversification into new markets
- Business combinations can provide income tax benefits
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