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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