Mergers and acquisitions are created for all of the following reasons except to
A)gain economies of scale.
B)gain new technology.
C)smooth out seasonal trends in sales.
D)increase its number of employees.
E)reduce tax obligations.

Question

Quizplus · Accepted Answer

Mergers and acquisitions are typically not created solely to increase the number of employees. While an increase in workforce may be a result of the merger or acquisition, it is not the primary purpose of the deal. The other options - gaining economies of scale, new technology, smoothing out seasonal trends in sales, and reducing tax obligations - are all common reasons for mergers and acquisitions.

Mergers and Acquisitions Are Created for All of the Following