Which of the Following Is NOT a Tax Consideration Motive

question 86

Multiple Choice

Which of the following is NOT a tax consideration motive for a merger?

• A) Tax gains from net operating losses
• B) Tax gains from unused debt capacity
• C) Tax gains from unused equity capacity
• D) Tax gains from surplus funds

---

Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and easy entry and exit, which leads to firms being price takers.

Public Ownership

The case in which goods are supplied by the government or by a firm owned by the government to protect the interests of the consumer in response to natural monopoly.

High-Quality Products

Goods that meet or exceed customer expectations in terms of durability, reliability, performance, and design.

Short-Run Supply Curve

A graphical representation showing the quantity of goods that producers are willing and able to sell at different prices over a short period of time, during which at least one of the firm's inputs is fixed.