A. minimize the effect of taxation
B. increase financial advantage
C. facilitate profit maximization
D. enhance economies of scale

Correct Answer:

Option D – enhance economies of scale

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.)

SEE ALSO  The organizational structure that relates the positions of specialist to the line mangers is called?

Copyright warnings! Do not copy.