Which of the Following Reasons Is Least Likely to Explain

question 52

Multiple Choice

Which of the following reasons is least likely to explain takeover activity?

• A)Target companies are undervalued.
• B)The presence of economies of scale in servicing shareholders.
• C)Increased market power resulting from takeovers.
• D)There are tax benefits.

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Definitions:

Decision Table

A tool used in both computing and decision analysis, indicating actions to be taken based on various conditions.

Conditional Value

The value of an asset, item, or scenario that depends on the fulfillment of certain conditions or the occurrence of specific events.

Historical Probability

The likelihood of an event occurring based on past data and trends.

Decision Trees

A graphical representation of possible solutions to a decision based on various conditions, often used in strategic planning and decision making.