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From the scenario, observe the main implications for firms entering into a merger. Develop key guidelines to follow whenever creating the terms of the merger in order to benefit all parties concerned. Examine two organizational forms of business (ex: functional, product and os on). Predict the possible implications of the principal agent relationship for each of such organizational forms of business. Find out which of the organization forms would have more of an economic impact on the operations of the firm and its capability to maximize profits. Give a rationale for your response.

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