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A merger occurs when two companies combine to form a new company. A company in its initial stages of growth bets on a single product, one service, and one type of consumers. As the company reaches an advanced stage of growth, it tends to operate over a larger varieties, bigger number of consumers, wider range of products, services of different types. This is indicative of the fact that it intends to mitigate its risks through diversification. Students who are struggling hard with these concepts, trying to know them better so as to implement it in the tedious and dull coursework of their daily lives, you would be delighted to know what is there is the box for you. Pure Diversification Homework Help can be provided to meet all your needs anytime and anywhere.
Know some facts about Pure Diversification
Pure diversification is mainly used to the advantage of the firms, owners as also the managers. This becomes even more conspicuous when the individual opts for diversification post a merger as that can do away with problems pertaining to scarcity of resources. Employees working for a firm for years are experienced and are said to develop skills specific to that firm only. So when the company closes down, he cannot redeem the values back from the dexterity with which he had worked for the company.
Diversification allows for shifting of a firm’s workers from unproductive sector to a productive one. This aids the owners and managers too as they get to work with their familiar workers specialised in their respective departments. Also they can execute a sterner control over the firm through pure diversification which additionally helps take off financial tax burden too.
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