Which of the Following Is NOT an Example of a Revenue

question 26

Multiple Choice

Which of the following is NOT an example of a revenue enhancement that is a result of a merger?

• A) The revenue stream of the acquired firm becomes more stable because the target firm has different risk characteristics.
• B) The merger may expand the target firm's operations into areas that are not fully competitive.
• C) The merger may create cost synergies.
• D) All of the options are examples of a revenue enhancement that is a result of a merger.

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Definitions:

Noncontrolling Interest

The portion of equity in a subsidiary not owned by the parent company, also known as minority interest.

Domestic Corporations

Corporations that are incorporated and operate in the same country in which they are registered.

Consolidated Income Tax Return

A single income tax return filed by a parent company on behalf of itself and its subsidiaries, consolidating their income and taxes as one entity.

Domestic Corporations

Domestic corporations are businesses that are registered, incorporated, or formed within a specific country and operate under its laws.