Which of the following is NOT a common reason for a merger? To achieve economies of scale To achieve faster growth To reduce uncertainty To increase short-run profits
Question
Which of the following is NOT a common reason for a merger? To achieve economies of scale To achieve faster growth To reduce uncertainty To increase short-run profits
Solution
The option "To increase short-run profits" is NOT a common reason for a merger. Mergers are typically strategic decisions made for long-term growth and sustainability, not for short-term profit maximization. While a merger may potentially lead to increased profits in the short run, this is usually not the primary motivation behind the decision to merge.
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