Mergers and Acquisitions Are Created for All of the Following

question 112

Multiple Choice

Mergers and acquisitions are created for all of the following reasons except to

• A)gain economies of scale.
• B)gain new technology.
• C)smooth out seasonal trends in sales.
• D)increase its number of employees.
• E)reduce tax obligations.

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Definitions:

Contingent Liabilities

Potential liabilities that may occur depending on the outcome of a future event, which are recorded in the financial statements if the occurrence is likely and the amount can be reasonably estimated.

Potential Obligation

This term refers to a possible future liability that might arise as a result of past events or transactions, dependent on certain occurrences.