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Discussion

The following are good reasons for mergers:

(I) Economies of scale

(II) Economics of vertical integration

(III) Complementary resources

(IV) Surplus funds

(V) Eliminating inefficiencies

(VI) Industry consolidation

  • A.I only
  • B. I, II, and III only
  • C. I, III, IV, and V only
  • D.I, II, III, IV, V, and VI

Answer: D

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