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One of the major reasons for merger is to

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Commerce JAMB 2016

One of the major reasons for merger is to

  • reduce the number of unskilled manpower
  • increase the number of skilled manpower
  • prevent liquidation checkmark
  • liberalize the market

The correct answer is: C

Explanation

Synergy: One of the main reasons why companies merge or acquire other companies is to create a synergy. Synergy is the concept that, the value of the combined companies will be greater than the joint value of the two individual companies. This will inturn prevent liquidation or folding up of a company

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