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

One of the main reasons for companies to participate in mergers and acquisitions is to expand within their own field or enter new markets. This allows them to increase their market share and potentially gain a competitive advantage over their rivals. By merging with or acquiring another company, a business can also access new products or services, diversify their offerings, and achieve economies of scale.

One Reason That Companies Participate in Mergers and Acquisitions Is