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:

Specific Performance

A legal remedy requiring a party to perform a specific act, often used in contracts when monetary compensation is inadequate.

Breach of Contract

The violation of any of the agreed-upon terms and conditions in a contract without lawful excuse.

Unenforceable

A term describing a contract or agreement that, due to certain defects or circumstances, cannot be legally compelled or executed.

Promise

An assurance given by one party to another agreeing to do or not do something in the future.