Which of the Following Statements Regarding Mergers and Taxes Is

question 24

Multiple Choice

Which of the following statements regarding mergers and taxes is false?

• A) Because it may be easier to measure performance accurately in a conglomerate, agency costs may be reduced and resources may be more efficiently allocated.
• B) Because employees holding a large fraction of their wealth in shares of the corporation for which they work are obligated to hold idiosyncratic risk, they benefit when the firm reduces that risk by conglomerating.
• C) Like a large portfolio, large firms bear less idiosyncratic risk, so often mergers are justified on the basis that the combined firm is less risky.
• D) Because most stockholders will already be holding a well-diversified portfolio, they get no further benefit from the firm diversifying through acquisition.

Understand the dimensional and categorical approaches to classifying personality disorders.

Identify the stages and characteristics associated with specific personality disorders according to various psychological theories.

Recognize the unique characteristics and diagnostic criteria of various personality disorders.

Analyze the reliability and validity concerns in diagnosing personality disorders.

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Definitions:

False

Not true; incorrect.

False Alternative

A logical fallacy that occurs when an argument presents a limited set of options as if they are the only possibilities when, in fact, more options exist.

Fallacy

An incorrect argument in logic and rhetoric resulting in a lack of validity, or more generally, an error in reasoning.

Lemon Trees

Perennial plants known for producing lemons, characterized by their citrus fruit and aromatic leaves.