The Justification for the Benefits of Diversification from Mergers Include

question 38

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:

Pharmaceutical Industry

This sector is involved in the research, development, production, and marketing of medications and therapeutic drugs.

Inputs to Outputs

The process of transforming resources or inputs (such as labor, capital, and materials) into products or services (outputs) in a production system.

R&D

Research and Development; activities undertaken by companies to innovate and develop new products or services.

Immediate Environment

The direct surroundings and conditions in which an organization operates, including factors that have immediate impact on its performance and decision-making processes.