Which of the Following Is a Poor Justification for a Merger

question 14

Multiple Choice

Which of the following is a poor justification for a merger?

• A) Tax considerations
• B) Lowering cost of capital
• C) Reducing costs
• D) Increasing the size of the firm

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Definitions:

Avoidance-Avoidance Conflict

A psychological conflict that occurs when a person has to choose between two undesirable options.

Multiple Approach-Avoidance Conflict

A psychological conflict that involves being torn between more than one goal that has both appealing and unappealing aspects.

Type B Behavior

A personality type characterized by less competitive, more relaxed, and less stress-prone behaviors compared to Type A.

Low Blood Pressure

A condition where the blood pressure in the arteries is abnormally low, possibly leading to symptoms like dizziness or fainting.