Question

What are the reason for merging.​

Answer 1

Explanation:

Reason of merger: (1) Increase in effective value: The principal reason of merger is, the value of the existing company formed by the combination of resources of one or more firms is greater than the earlier companies. Hence, due to merger the value of the firm increases and its works more efficiently.

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Answer 2

Answer:

Reason of merger: (1) Increase in effective value: The principal reason of merger is, the value of the existing company formed by the combination of resources of one or more firms is greater than the earlier companies. Hence, due to merger the value of the firm increases and its works more efficiently.