Which of the following is a not a reason for a business combination to take place?
A) Cost savings through elimination of duplicate facilities.
B) Quick entry for new and existing products into domestic and foreign markets.
C) Diversification of business risk.
D) Vertical integration.
E) Increase in stock price of the acquired company.

Question

Quizplus · Accepted Answer

Business combinations typically aim to create synergies, expand market reach, or diversify risk, not to increase the stock price of the acquired company, which is not a direct reason for a merger or acquisition.

Which of the Following Is a Not a Reason for a Business