WAEC Commerce 2019 Question 12

Question 12

Business Combinations

A group of companies formed to carry out an activity that is beyond the ability of any individual company is

  1. A.a subsidiary.
  2. B.a merger.
  3. C.a consortium.
  4. D.an acquisition.
Show the answer and explanation

Answer: C (a consortium.)

Explanation

A consortium is a temporary association of firms that join forces for a project too big for any one of them, while each keeps its identity.