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Abc Company, Manufacturing Shoes, Has Taken Over Xyz Company Which Also Manufactures Shoes at a Small Scale. What Do You Think Will Be the Reason for this Kind of Takeover? - Entrepreneurship

Short Note

 ABC Company, manufacturing shoes, has taken over XYZ Company which also manufactures shoes at a small scale. What do you think will be the reason for this kind of takeover?

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Solution

Following can he reasons for the take over:

  1. ABC Company may have decided to expand in terms of its production and wanted to raise its sales and turnover.
  2. ABC Company may have decided to expand its area of sales and so may be desirous to take over the marketing area of XYZ Company.
  3. ABC Company may have wanted to use the research and development of the XYZ company for raising its output and sales.
Concept: Types of Mergers
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APPEARS IN

CBSE Class 12 Entrepreneurship Textbook
Chapter 4 Enterprise Growth Strategies
Application Based Questions | Q 1 | Page 172
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