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

question 21

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

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Definitions:

Null Hypothesis

The default assumption that there is no significant difference or relationship between variables being studied.

Directional Hypothesis

A directional hypothesis predicts the specific direction of the relationship between variables, such as one variable increasing as the other decreases.

Greek Letters

Symbols used in statistics and other scientific fields to represent variables, parameters, and coefficients.

Directional Research Hypothesis

A hypothesis that predicts the specific direction of the relationship between variables.