Question

An acquisition is considered beneficial because it effectively reduces the number of businesses in a market.

a-true
b-false

Answer 1

An acquisition does not reduce the number of businesses in a market. It combines two formerly independent firms into one.

Step-by-step explanation:

An acquisition is when one firm purchases another firm. It does not reduce the number of businesses in a market. Instead, it combines two formerly independent firms into one. Antitrust laws are in place to regulate mergers and acquisitions to ensure competition in the market.