JAMB Commerce 2022 Objective — Question 40

Question 40 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2022 Objective paper, with the correct answer and a full explanation.

40. The major objective of corporate mergers is to

A. (A) minimize the effects of taxation
B. (B) increase financial advantage
C. (C) facilitate profit maximization
D. (D) enhance economies of scaleCorrect

Explanation

Mergers enhance economies of scale, because some administrative costs can be avoided when two companies combine.

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