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What does consolidation typically refer to in a business context?

Becoming weaker in the market

Combining several businesses for effectiveness

In a business context, consolidation generally refers to the process of combining multiple businesses, assets, or operations into a single, more effective entity. This process often aims to achieve greater efficiency, reduce costs, and enhance competitive advantage in the market. By merging or acquiring other businesses, a company can consolidate its resources, streamline operations, and potentially increase market share.

Consolidation may involve various strategies, such as mergers and acquisitions, where two or more companies join forces to operate as one, or the integration of subsidiaries and divisions within a larger organization. The ultimate goal of consolidation is to create a stronger organization that can better compete and thrive in the marketplace. This makes the concept of combining several businesses for effectiveness the correct understanding in this context.

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Stopping all company activities

Expanding operations without evaluating

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