Transaction costs include all of the following EXCEPT
A)charges from investment bankers who complete due diligence for the acquiring firm.
B)the loss of key employees following the acquisition.
C)managers' time spent evaluating target firms.
D)managers' time spent planning the diversification strategy of the firm.

Question

Quizplus · Accepted Answer

Transaction costs typically refer to costs directly associated with the process of completing a transaction, such as fees and expenses. Managers' time spent planning the diversification strategy is a strategic planning activity, not a transaction cost.

Transaction Costs Include All of the Following EXCEPT