According to the text, all of the following are reasons for firms to merge except
A) to exercise greater market control
B) to increase control over suppliers of their inputs
C) to increase control over buyers of their products
D) to diversify assets
E) to form a cartel

Question

Quizplus · Accepted Answer

Merging to form a cartel is not a primary reason for firms to merge. Cartels are agreements among competitors to control prices or limit production, which is distinct from the strategic business reasons for merging such as increasing market control, control over suppliers or buyers, or diversifying assets.

According to the Text, All of the Following Are Reasons