Which of the following would be the least important reason for a company to merge with another company?
Which of the following would be the least important reason for a company to merge with another company?
While reasons such as diversifying risk, reducing labor costs, or increasing stock prices offer direct and substantial financial benefits to a company, merging strictly as a response to new government policy is less likely to be a primary driving factor. Companies typically merge to achieve specific strategic objectives that enhance their competitive advantage and financial footing, rather than simply reacting to external policy changes.
This is a part 1 question
why diversify risk?