Which of the Following Are Legal and Acceptable Reasons for the High

question 21

Multiple Choice

Which of the following are legal and acceptable reasons for the high level of merger activity in the U.S.during the 1980s?

• A) A profitable firm acquires a firm with large accumulated tax losses that may be carried forward.
• B) Attempts to stabilize earnings by diversifying.
• C) Purchase of assets below their replacement costs.
• D) Reduction in competition resulting from mergers.
• E) Synergistic benefits arising from mergers.

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Definitions:

Dial-indicator

A precision tool used to measure small distances or angles accurately, often in machining processes.

Lathe Shaft

A component of a lathe machine which rotates, typically used to hold, drive, or support the workpiece being machined.

Out of Round

A condition where a component, typically a wheel or drum, does not have a perfectly circular shape, affecting performance.

Brake Warning Light

An indicator light on a vehicle's dashboard that illuminates to warn the driver of potential issues with the braking system.