The Direct Financial Motives for Merger Activity Include All of the Following

question 31

Multiple Choice

The direct financial motives for merger activity include all of the following EXCEPT:

• A) The portfolio effect
• B) An improved financial posture and greater debt
• C) The utilization of tax loss carryforwards
• D) Vertical integration

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Definitions:

Probability

A numeric evaluation of the chance that an event will happen, specified as a number from 0 to 1.

Law of Large Numbers

A principle that states that as a sample size grows, its mean will get closer to the average of the whole population.

Probability Assignment Rule

A principle used to assign probabilities to outcomes of a random experiment, ensuring the probabilities are non-negative and sum to one.

Independent Events

Two or more events in probability with the outcome of any one event not influencing or being influenced by the outcome of the other event(s).