Which of the Following Are Legal and Acceptable Reasons for the High

question 26

Multiple Choice

Which of the following are legal and acceptable reasons for the high level of merger activity in the U.S. during the 1980s?

• A) Synergistic benefits arising from mergers.
• B) A profitable firm acquires a firm with large accumulated tax losses that my be carried forward.
• C) Attempts to stabilize earnings by diversifying.
• D) Purchase of assets below their replacement costs.
• E) Reduction in competition resulting from mergers.

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Definitions:

International Tourists

Individuals who travel to countries other than their own for leisure, business, or other purposes, contributing to the global tourism industry.

Young Working People

Individuals, often in their late teens to early adulthood, engaged in the workforce and contributing to the economy while potentially pursuing education or vocational training.

Patronage

The support, encouragement, privilege, or financial aid that an organization or individual bestows to another; in politics, it can refer to the distribution of jobs and grants to supporters of those in power.

Gilded Age

A period in late 19th-century America characterized by rapid economic growth, industrialization, and ostentatious wealth, but also marked by social inequalities and political corruption.