One of the most basic reasons for a merger is:
A)revenue enhancing in the hopes that net losses may decrease.
B)increased competition.
C)employee beneﬁts.
D)cost reductions.
E)to keep lawyers and accountants employed.

Question

Quizplus · Accepted Answer

The most basic reason for a merger is to achieve cost reductions through economies of scale, improved efficiency, and elimination of duplicate functions. This leads to increased profitability and shareholder value. Revenue enhancement and employee benefits are potential benefits but not the primary reason for a merger. Increased competition may lead to a merger, but it is not a reason for a merger in itself. Keeping lawyers and accountants employed is not a valid reason for a merger.

One of the Most Basic Reasons for a Merger Is