Which of the following is not a financial motive but rather an operating motive for merger and consolidation?
A) The portfolio diversification effect.
B) Tax-loss carry-forward.
C) Greater financing capability.
D) Desire for greater size.

Question

Quizplus · Accepted Answer

Desire for greater size is an operating motive for merger and consolidation, as it can lead to economies of scale and increased market power. The other options listed are financial motives, as they relate to improving financial performance or flexibility.

Which of the Following Is Not a Financial Motive but Rather