Which of the Following Is Not a Reason for Acquiring

question 33

Multiple Choice

Which of the following is not a reason for acquiring a controlling interest in another company?

• A)Possible economies of scale.
• B)Reducing business risk.
• C)Increasing competition.
• D)Safeguarding supply resources.

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Definitions:

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Resource

In finance, a resource refers to any financial asset or input that can contribute to a firm's ability to create goods, services, or further financial gains.

Annuity

A financial instrument that provides a consistent series of payments to a person, often employed as a component of a retirement plan.

Equal Payments

Regular payments of the same amount over a specified period, often associated with loans or mortgages.