The main objective of corporate mergers is to?

The main objective of corporate mergers is to?

  • A.
    minimize the effect of taxation
  • B.
    increase financial advantage
  • C.
    facilitate profit maximization
  • D.
    enhance economies of scale
Correct Answer: Option D
Explanation

The main benefit of a merger is to gain more market share. This increases a firms monopoly power and enables higher prices (this is why mergers are often regulated by government.)

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