Question 90
Business CombinationsBusiness mergers are on the increase these days for the main purpose of
- A.having more directors
- B.enjoying advantages of large-scale activities
- C.easy settlement of disputes among businessmen
- D.organizing trade fairs and exhibition
- E.government recognition
Show the answer and explanation
Answer: B (enjoying advantages of large-scale activities)
Explanation
Firms merge mainly to become bigger and enjoy economies of large-scale production.