Question

As per the reports in various newspapers, India is amongst the top five countries in Asia-Pacific region where maximum number of mergers and acquisitions have taken place. What are the main motives behind merges and acquisitions in business ?
A) To increase revenue or market share
B) To get benefit in taxation
C) To have monopoly on the market of a particular product

• A. Only A
• B. Only B
• C. Only C
• D. Both A and B

Answer 1

The correct option is A Only A

A merger is a combination of two or more companies into one company. Generally, the motives of mergers are to enhance the competitiveness of new combined entity in the form of synergies, growth,increasing revenue and market share etc. It is generally achieved through stock swap or outright payment to other company.