Diversification Is Often a Poor Motive for Mergers Because

question 28

Multiple Choice

Diversification is often a poor motive for mergers because:

• A) vertical integration is rarely successful.
• B) investors can diversify on their own account.
• C) it does not produce economies of scale.
• D) the increase in taxes overcomes gains in earnings.

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Definitions:

Passionate Love

A profoundly intense and overwhelming emotion characterized by strong desire, deep connection, and affection towards someone.

Relational Aggression

Behavior that is meant to harm the social standing of another person.

Institutional Aggression

Aggressive behavior that occurs within institutions (e.g., prisons, military) and is influenced by the social structure and culture of the organization.

Overt Aggression

Physical or verbal behavior that directly harms another person.