The Justification for the Benefits of Diversification from Mergers Include

question 50

Multiple Choice

The justification for the benefits of diversification from mergers include all of the following EXCEPT:

• A) Tax loss benefits
• B) Lower cost of debt or increased debt capacity
• C) Direct risk reduction
• D) Liquidity enhancement

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Definitions:

Depth of Processing

A cognitive psychology theory that suggests the deeper the level at which information is thought about, the more likely it is to be remembered.

Hypnosis

A condition of deep attention resembling a trance, where suggestibility is increased, often applied in therapy.

Sympathetic Nervous System

Part of the autonomic nervous system responsible for the body's 'fight or flight' response during stressful situations.

Polygraph

An instrument that measures and records several physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while the subject is asked and answers a series of questions, purported to indicate truthfulness.