The Text Gives a Number of Valid,acceptable Reasons for Companies

question 23

Multiple Choice

The text gives a number of valid,acceptable reasons for companies to merge.Which of the following is NOT acceptable?

• A) Synergistic benefits arising from mergers.
• B) Reduction in competition resulting from mergers.
• C) Acquisition of assets at below replacement value.
• D) Attempts to minimize taxes by acquiring a firm with large accumulated losses that can be used immediately.
• E) Using surplus cash to acquire another firm and prevent unfavorable tax consequences for shareholders.

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Definitions:

Cognitive Development

The construction of thought processes, including remembering, problem-solving, and decision-making, from childhood through adolescence to adulthood.

Middle Childhood

A developmental stage that typically covers the period from 6 to 12 years of age, encompassing significant growth in cognitive, social, and physical areas.

Concrete Operations

The third stage in Piaget’s cognitive-developmental theory of moral development, characterized by flexible, reversible thought concerning tangible objects and events.

Longitudinal Research

The study of developmental processes by taking repeated measures of the same group of children at various stages of development.