Which of the following is an advantage of merger?Question 8Select one:a.Economies of scaleb.Finance advantagesc.Business diversificationd.a,be.all of the above
Question
Which of the following is an advantage of merger?Question 8Select one:a.Economies of scaleb.Finance advantagesc.Business diversificationd.a,be.all of the above
Solution
The correct answer is e. All of the above.
Here's why:
a. Economies of scale: When two companies merge, they often can take advantage of economies of scale. This means they can reduce their costs by sharing resources, such as staff, equipment, and technology.
b. Finance advantages: Mergers can also provide financial advantages. For example, a larger company might have more bargaining power with suppliers or lenders, which can lead to better terms and lower costs.
c. Business diversification: Mergers can also help companies diversify their business. This can reduce risk by spreading it across different products, services, or markets.
So, all of the options listed are advantages of mergers.
Similar Questions
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