One Potential Advantage of a Merger to the Acquiring Firm

question 36

True/False

One potential advantage of a merger to the acquiring firm is the "portfolio effect," which attempts to achieve risk reduction while perhaps maintaining the rate of return for the firm.

---

Definitions:

Sensation

The process of receiving stimulus energies from the external environment and transforming those energies into neural energy.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, involved in multiple high-level functions like perception, thought, and memory.

Parietal Lobes

Regions of the brain located behind the frontal lobes that are responsible for processing sensory information from various parts of the body, understanding spatial orientation, and managing navigation.

Occipital Lobes

Structures located at the back of the head that respond to visual stimuli.