Which of the Following Are Generally Not Considered Motives for Mergers

question 5

Multiple Choice

Which of the following are generally not considered motives for mergers?

• A) Desire to achieve economies of scale
• B) Desire to achieve economies of scope
• C) Desire to achieve antitrust regulatory approval
• D) Strategic realignment
• E) Desire to purchase undervalued assets

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Definitions:

Federal Income Tax Payable

Liabilities owed to the federal government for income taxes that have been incurred but not yet paid.

Direct Method

An accounting approach for the cash flow statement that lists major classes of gross cash receipts and payments.

Deferred Revenue

Deferred revenue is income a company has received for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet until the obligation is fulfilled.

Accounts Receivables

Money owed to a business by its clients for goods or services delivered but not yet paid for.