Primary Motives for Merging Include Growth or Diversification, Synergy, Fund

question 5

True/False

Primary motives for merging include growth or diversification, synergy, fund raising, increased managerial skill or technology, tax considerations, increased ownership liquidity, and acquiring new upper-level management personnel.

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Definitions:

Equity Securities

Financial instruments that represent an ownership interest in a company, such as stocks.

Money-Market Funds

Investment funds that invest in short-term debt securities with the goal of providing high liquidity and low risk.

Treasury Bills

Short-term government securities with maturities of one year or less, used as a tool for managing short-term liquidity.

Strategic Investments

Investments made by a company in alignment with its long-term goals and objectives, often to secure a competitive advantage or enter new markets.