One of the most basic reasons for a merger is:
A) revenue enhancements 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. By combining resources, companies can eliminate redundant operations and reduce costs, resulting in improved efficiency and profitability. While revenue enhancements and employee benefits may be potential benefits of a merger, they are not the primary reasons for pursuing one. Increased competition may also be a factor, but it is not as fundamental as the need for cost reductions. The option E is clearly a joke and not a serious answer.

One of the Most Basic Reasons for a Merger Is