Question:medium

Merger and acquisition is implemented by companies those target

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Think about why a company pays to buy another company: it wants to grow faster than it could alone.
Updated On: Jul 13, 2026
  • expansion and growth
  • name and fame
  • labour intensive production
  • capital intensive production
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The Correct Option is A

Solution and Explanation

Step 1: Understanding the Concept:
Merger and acquisition (M&A) is a corporate strategy where one firm combines with or takes over another firm. We need to find the main business goal behind such deals.

Step 2: Key Formula or Approach:
Think about why a company would spend a large sum of money buying another company. The usual reasons in business strategy are reaching new markets, adding production capacity, gaining technology, or removing a competitor, all of which add up to faster growth.

Step 3: Detailed Explanation:
Check each option against this idea. "Name and fame" is not a financial goal that boards approve large deals for. "Labour intensive production" and "capital intensive production" describe a factory's production style, not a reason to buy another company. Only "expansion and growth" matches how M&A is actually used: a company merges with or acquires another firm to grow its size, market reach, and capability quickly, rather than growing slowly on its own.

Step 4: Final Answer:
Companies use mergers and acquisitions mainly to target expansion and growth.
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