Which of the Following Refers to a Tax Strategy of Letting

question 57

Multiple Choice

Which of the following refers to a tax strategy of letting assets appreciate in value over a long period before realizing the gains?

• A) Tax deduction.
• B) Tax exemption.
• C) Tax-deferred growth.
• D) Tax credit.

---

Definitions:

Synergies

Synergies are the additional value created by the combination of two companies, expected to result in cost savings or increased revenues beyond what the individual entities could achieve alone.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Investment Opportunities

Options available for entities or individuals to invest capital with the expectation of a positive return.

Vertical Acquisition

The acquisition of a company operating within the same industry but at a different level of the supply chain, enhancing supply chain efficiency.