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The main objective of corporate mergers is to?

Commerce
JAMB 2018

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
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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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