Which of the following are the motives of mergers? Indicate the correct answer: 1. Gain the economies of scale. 2. Utilize under-utilized resources. 3. Break the monopoly. 4. Reduce tax liability

The correct answer is B. 1, 2 and 4.

• Gain the economies of scale: When two companies merge, they can often achieve economies of scale by combining their operations. This can lead to lower costs and higher profits.
• Utilize under-utilized resources: When two companies merge, they may have resources that are
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