Question 12.RQ.3: Identify four reasons why a business seeking to maximise the...

Identify four reasons why a business seeking to maximise the wealth of its shareholders may wish to take over another business.

The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

Four reasons for taking over another business are:
\bullet To exploit underutilised resources.
\bullet To acquire complementary resources.
\bullet To achieve benefits of scale.
\bullet To eliminate competition and increase market share.

Related Answered Questions

Question: 12RQ.4

Verified Answer:

Four methods of resisting a takeover bid are: [lat...
Question: 12.RQ.2

Verified Answer:

Reasons for divestment may include the following: ...
Question: 12.RQ.1

Verified Answer:

A merger involves a combination of two (or more) b...
Question: 12.A.20

Verified Answer:

The value of an ordinary share will be: Presen...
Question: 12.A.18

Verified Answer:

The value of an ordinary share using the dividend ...