Currently, the rationale for making an acquisition includes each of the following EXCEPT
A) to increase market power.
B) to decrease taxes paid by shareholders.
C) to increase financial performance.
D) to shift a core business into different market.

Question

Quizplus · Accepted Answer

While an acquisition may result in tax benefits, reducing taxes paid by shareholders should not be the primary rationale for making an acquisition. The other three options are valid reasons for making an acquisition: increasing market power, improving financial performance, and expanding a business into new markets or products.

Currently, the Rationale for Making an Acquisition Includes Each of the Following