Which of the Following Is Not a Potential Benefit of a Merger

question 29

Multiple Choice

Which of the following is not a potential benefit of a merger?

• A) Greater access to financial markets,and thus,be in a better position to raise debt and equity capital.
• B) Achieving risk reduction while perhaps maintaining the firm's rate of return.
• C) Tax loss carry-forward might be available in a merger if one of the firms has previously sustained a tax loss.
• D) Increased standard deviation of earnings per share.

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Definitions:

Marketing Strategy

A long-term plan designed to achieve the marketing goals of an organization by effectively reaching its target market and converting potential customers into actual ones.

Marketing Strategies

Marketing strategies are comprehensive plans formulated to achieve specific marketing goals, such as increasing brand awareness, attracting new customers, or boosting sales.

Target Market

The specific group of consumers at whom a company aims its products and services.

Time Schedule

An organized plan specifying when tasks or events are expected to take place.