Which of the Following Is Not True About Mergers and Acquisitions

question 105

Multiple Choice

Which of the following is not true about mergers and acquisitions and taxes?

• A) Tax considerations and strategies are likely to have an important impact on how a deal is structured by affecting the amount, timing, and composition of the price offered to a target firm.
• B) Tax factors are likely to affect how the combined firms are organized following closing, as the tax ramifications of a corporate structure are quite different from those of a limited liability company or partnership.
• C) Potential tax savings are often the primary motivation for an acquisition or merger.
• D) Transactions may be either partly or entirely taxable to the target firm's shareholders or tax-free.
• E) None of the above