The Following Are Dubious Reasons for Mergers

question 62

Multiple Choice

The following are dubious reasons for mergers:
I. to diversify
II. increasing the earnings per share (EPS)
III. lower financing costs
IV. industry consolidation

• A) I only
• B) II and IV only
• C) III and IV only
• D) I, II, and III only

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Definitions:

Goodwill

The value of a business beyond its tangible assets, including its reputation and patronage. Also, a favorable condition and overall atmosphere of trust that can be fostered between parties conducting business.

Negative Message

Communication that conveys a refusal, rejection, or other unfavorable information, often requiring careful wording to maintain goodwill.

Apologies

Expressions of regret for past actions or statements, often used to mend relationships or acknowledge mistakes.

Maintain Goodwill

The ongoing effort to foster positive relationships and perceptions among stakeholders, customers, or within a community.