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 Form 2 Business Studies: Forms of business units lessons

Reasons for almagamation of companies.

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Answer Text:
Reasons for almagamation of companies.
-The merging firms wish to control the market share.
-In order to reduce the cost of production by producing on large scale.
-To control supply of factors of production
-To raise more capital to run the business
-To make efficient use of factors of production.
-To eliminate competition in the market.
-To spread risks to many firms
-To undertake research and development collectively.


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