Which of the Following Are Legal and Acceptable Reasons for the High

question 23

Multiple Choice

Which of the following are legal and acceptable reasons for the high level of merger activity in the U.S. during the 1980sσ

• A) a profitable firm acquires a firm with large accumulated tax losses that may be carried forward.
• B) attempts to stabilize earnings by diversifying.
• C) purchase of assets below their replacement costs.
• D) reduction in competition resulting from mergers.
• E) synergistic benefits arising from mergers.

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Definitions:

Inward

Often used in economics to describe movements towards the center of an economic system, such as inward investment, referring to investment in domestic resources from foreign entities.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one could have received by taking the alternative action.

Hybrid Cars

Vehicles that use a combination of at least one electric motor alongside a gasoline engine to propel the vehicle, offering improved fuel efficiency.

Motorcycles

Two-wheeled vehicles powered by an engine, often used for transportation or recreation.