Q70
Two reasons for mergers and acquisitions are
A.
to increase managerial staff and to minimize economies of scale
B.
to reduce tax obligations and increase managerial staff
C.
to create seasonal trends in sales and to make better use of a new sales force
D.
to provide improved capacity utilization and to gain new technology
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Two reasons for mergers and acquisitions are to provide improved capacity utilization and to gain new technology. Engaging in the promotional activities, introducing new ways by which product value can be increased, which in turn increases the production rate which leads to maximum capacity utilization.