The text gives a number of valid,acceptable reasons for companies to merge.Which of the following is NOT acceptable?
A) Synergistic benefits arising from mergers.
B) Reduction in competition resulting from mergers.
C) Acquisition of assets at below replacement value.
D) Attempts to minimize taxes by acquiring a firm with large accumulated losses that can be used immediately.
E) Using surplus cash to acquire another firm and prevent unfavorable tax consequences for shareholders.

Question

Quizplus · Accepted Answer

Reduction in competition resulting from mergers is not considered an acceptable reason as it can potentially harm the market and customers through reduced options and higher prices. The other options listed are valid reasons for companies to merge.

The Text Gives a Number of Valid,acceptable Reasons for Companies