Which of the following is not a reason for a company to expand through a combination,rather than by building new facilities?
A)A combination might provide cost advantages.
B)A combination might provide fewer operating delays.
C)A combination might provide easier access to intangible assets.
D)A combination might provide an opportunity to invest in a company without having to take responsibility for its financial results.

Question

Quizplus · Accepted Answer

The option "A combination might provide an opportunity to invest in a company without having to take responsibility for its financial results" is not a valid reason for a company to expand through a combination. It does not provide any strategic or operational benefit to the company, and it only focuses on financial gain without considering the long-term sustainability of the expansion strategy. The other options (A, B, and C) are valid reasons for a company to expand through a combination, as they provide cost advantages, operational efficiency, and access to intangible assets such as technology, skills, and knowledge.

Which of the Following Is Not a Reason for a Company