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One of the reasons that companies might merge is to diversify their product lines. True False
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41 votes
41 votes
One of the reasons that companies might merge is to diversify their

product lines.

True
False

User Sergeyol
by
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1 Answer

27 votes
27 votes
Answer: true
Explanation: The most common factor is the potential growth of the business. A business merger may give the acquiring company a chance to grow its market share.They can reduce the costs of developing business activities that will complement a company's strengths. The acquisition can also increase the supply-chain pricing power.
User Omnisis
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