An
outstanding feature of modern
industry is business
combinations. In almost very sphere of business activity, some form of combination exists between different units. The term combination has been
derived from 'combine' which means
joining together. In the words of Haney. "To combine is simply to become one of the parts of a whole and a combination is merely a union of
persons to make a whole or group for the
prosecution of some
common purpose." A
business combination occurs when two or more
business firms
co-operate with one another formally or
informally for the purpose of attaining some common objective, e.g.; to
stabilise prices and
increase profits. A business
combination is a
compound combinations which are 'simple combinations' of natural persons.
McGregor has defined an
industrial combination as "a method of
economic organisation by which a common control of
greater or less completeness is exercised over a number of firms which either have operated hitherto or could operate,
independently, This control may be either
temporary or
permanent, for all or only for some
purpose." According to Dr. Kothari "combination by
whatever name called, refers to any
informal or formal combining of two or more industrial units, producing similar or different articles or engaged in the successive processes of
manufacturing of an
article with a view to earn
maximum profit on the capital
empolyed."
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