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A business is planning to increase its market share by merging with a competitor - HSC - SSCE Business Studies - Question 2 - 2014 - Paper 1
Question 2
A business is planning to increase its market share by merging with a competitor. What financial objective does this best illustrate? (A) Growth (B) Liquidity (C) Pr... show full transcript
Worked Solution & Example Answer:A business is planning to increase its market share by merging with a competitor - HSC - SSCE Business Studies - Question 2 - 2014 - Paper 1
Step 1
What financial objective does this best illustrate?
Answer
The decision of a business to merge with a competitor aims to enhance its market share, which is fundamentally related to its expansion in the market. This strategic move aligns with the financial objective of Growth. By merging, the company not only consolidates resources but also potentially increases its customer base and market presence, driving overall growth in revenue.