Disadvantages of Business Combination :-Following are important disadvantages of combination :
1. Creation of Monopoly :-
It creates monopoly which is harmful for the public.
2. Concentration of Wealth :-
It concentrates the wealth in few hands and divides the society into two classes rich and poor.
3. Not Acceptable :-
Combination is disliked by the people, it is not acceptable.
4. Changes of Friction :-
The chances of friction among directors and officers are bright. They quarrel with each other for their own interest.
5. No Personal Contact :-
It is not possible to maintain direct contact between employees, creditors and shareholders. Due to this business may suffer a loss.
6. Costly Management :-
A combination hires costly management, which increases the cost of production.
7. Over Capitalization :-
There is always a danger of over capitalization in the combination. It is harmful for the combination.
8. Misuse of Funds :-
The directors of the company enjoy unlimited power and misuse the capital.
9. National Interest Ignored :-
Generally the combinations ignore the national interest and they involved in such activities which are against the national interest.
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