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QUESTION 6 Which of the following statements would not be a valid or logical reason for entering into a business combination?
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Answer C. The operating costof the combined entity would be more than the sum of the separate entities.

As for combination of two entities, the logical reason would be to increase market share, or to acquire well Established product line of an entity, as well as to increase profitability.

the reason to increase operating cost would not be the motive for combination.

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