Which of the following is NOT typically a motive behind a company merger?

Multiple choice question for Alternative Theories Of The Firm. Select an option, then review the explanation below.

Explanation

Mergers are generally pursued to reduce uncertainty, promote faster growth, and achieve economies of scale. Increasing competition is not a usual reason for merging companies.

Practice related questions from the same subject.

1.Why do companies create organizational slack within their structure?
2.Which of the following groups are not considered stakeholders in a business?
3.What type of merger occurs when two companies in the same clothing industry combine?
4.What type of merger occurs when a fiber manufacturing company combines with a clothing manufacturer?
5.In which type of market is sales maximization most commonly observed?

Which of the following is NOT typically a motive behind a company merger?

Explanation

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