The Argument That Mergers Are Valuable Because They Create Revenue

question 62

Multiple Choice

The argument that mergers are valuable because they create revenue synergies is based on

• A)the opportunity to expand into less than fully competitive markets.
• B)the diversification effects of combining dissimilar asset and liability portfolios.
• C)realizable economies of scope.
• D)the enhancement of revenues by acquiring a bank in a growing market.
• E)the opportunity to expand into less than fully competitive markets, the diversification effects of combining dissimilar asset and liability portfolios, and the enhancement of revenues by acquiring a bank in a growing market.

Understand the importance of flexibility and adaptive planning in budgeting.

Learn the sequence in which different component budgets are prepared.

Identify methods to motivate employees through budgeting.

Recognize the relationship between budgeting and performance evaluation.

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Definitions:

Neutral Tax

A tax system that is designed to have a neutral impact on the economic choices and behaviors of individuals and businesses, not favoring one decision over another.

Progressive Tax

A tax system where the rate increases as the taxable amount rises, aiming to reduce the tax burden on individuals who have a lower ability to pay.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer’s income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Regressive Tax

A tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners, considered to be inversely proportional to the taxpayer's ability to pay.