Following are the advantages of business combination.
1. Competition between and among the companies will be eliminated.
2. Amount of capital can be increased by combining business.
3. Establishment and management cost can be reduced.
4. Benefits of large scale production can be secured.
5. Operating cost can be reduced by avoiding duplication.
6. Research and development facilities are increased.
7. Monopoly in the market can be achieved.
8. Bulk purchase of materials at reduced price is possible.
9. Stability of the price of goods is maintained.
Following are the disadvantages of business combination
1. Business combination brings monopoly in the market, which may be harmful for the society.
2. The identity of the old company finishes.
3. Goodwill of the old companies decrease.
4. Management of the company becomes difficult.
5. Business combination may result in over-capitalization.
Why should a business weigh the advantages and disadvantages of each ownership option ?
The advantages and disadvantages of different forms of business ownership are of immense importance when it comes to choosing any one of them.
The advantages are that you will not have to pay it back or worry about interest. Disadvantages are that you have to come up with the money no your own.
Noone cares :p
Advantages: beter trade items, more varied economy, and surplus of food Disadvantages: need for a more organized gvt. System
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Why should a business weigh the advantages and disadvantages of each ownership option ?
The advantages are that you will be able to get more things for the business. The disadvantages are that they are a lot of costs.
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hey
there are no disadvantages :)
What_are_the_advantages_and_disadvantages_of_organic_growth_in_business
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MUAHAHAHA
The advantages and disadvantages of different forms of business ownership are of immense importance when it comes to choosing any one of them.