Which of the Following Justifications for Mergers Is Arguably for the Benefit

question 154

Multiple Choice

Which of the following justifications for mergers is arguably for the benefit of management rather than stockholders?

• A)Synergies
• B)External growth
• C)Diversification to reduce risk
• D)Economies of scale
• E)Guaranteed sources and markets

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Definitions:

Due Date

The specified date by which an obligation, such as a bill or assignment, must be completed or paid.

Remittance

The process of sending money in payment or as a gift, often referring to funds that are sent by migrants back to their country of origin.

Discount Period

The time frame within which a payment can be made at a reduced rate before the full invoice amount becomes due.

Discount Date

The specified date when a payment is to be made earlier than the due date at a reduced amount, as a motivation for early payment.