One reason that companies participate in mergers and acquisitions is:
A)To do the same thing as the competition because it makes for a highly leveraged company.
B)To convert a sole proprietorship into a partnership.
C)To expand within their own field or enter new markets.
D)To take the first step toward a join venture.

Question

Quizplus · Accepted Answer

Companies typically participate in mergers and acquisitions in order to expand their business within their own field or enter into new markets. This allows for growth and potentially increased profitability. Option A is incorrect as simply copying the competition is not a sound strategy. Option B is incorrect as mergers and acquisitions involve multiple companies, not just a sole proprietorship. Option D is incorrect as a joint venture can be formed without the need for a merger or acquisition.

One Reason That Companies Participate in Mergers and Acquisitions Is