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:

Unrealized Holding Gain/Loss

Gains or losses on investments that have not yet been sold, and thus the gain or loss has not been "realized."

Other Comprehensive Income

Revenues, expenses, gains, and losses that are not included in net income, but affect shareholders' equity.

Unrealized Loss

A decline in worth due to the possession of an asset that has depreciated in value, yet remains unsold.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, are subtracted from total revenue.