The Following Are Sensible Motives for Mergers

question 41

Multiple Choice

The following are sensible motives for mergers:
I.prevent target firm from wasting surplus funds;
II.eliminate target firm inefficiencies;
III.complementary resources;
IV.increasing earnings per share (EPS)

• A)I only
• B)I and II only
• C)I, II, and III only
• D)IV only

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Definitions:

Journal Entries

Records that document financial transactions in an accounting system, indicating the accounts and amounts to be debited and credited.

Bank Memos

Bank memos are notes or records created by a bank to document adjustments made to a bank account, explaining any changes or transactions.

Bank Reconciliation

A process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and to identify any discrepancies.

Bank Statement

A document provided by a bank, detailing the transactions in a customer's account over a specified period.