Question

Assertion (A): Acquisition helps companies to expand their market share and gain access to a new customer base.

Reason (R): In an acquisition, one company purchases another enterprise to create synergies and enhance operational efficiency.

विकल्प

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Explanation:

Acquisitions do help expand market share and access new customers (A is true). An acquisition is indeed when one company buys another to create synergies and improve efficiency (R is true). But those synergies/efficiency gains don’t explain the market-share/customer-base expansion; that happens because the buyer inherits the target’s markets and customers.