Which One of the Following Statements Is Correct

question 41

Multiple Choice

Which one of the following statements is correct?

• A) The IRS automatically approves acquisitions that are primarily designed to lower federal taxes.
• B) The leverage associated with an acquisition increases the tax liability of the acquiring firm.
• C) A firm may benefit from an acquisition if it can lower its capital requirements.
• D) Firms can always benefit from economies of scale if they increase the size of their firm through acquisitions.
• E) If a firm uses its surplus cash to acquire another firm, then the shareholders of the acquiring firm immediately incur a tax liability related to the transaction.

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Definitions:

Windshield Survey

A method used in community health nursing where observations about a community's health are made from a car.

Demographic Data Review

The analysis of data regarding the characteristics of a population such as age, race, gender, income, and education.

Physical Assessment

A systematic examination of a patient's body conducted by a healthcare provider to detect any signs of disease or abnormalities.

Record Review

The process of examining and analyzing health records or other records to evaluate the quality of care or to gather data.