All of the following represent potential gains from an acquisition except the:
A) tax loss carryforwards acquired in the acquisition.
B) lower costs per unit realized.
C) diseconomies of scale related to increased labor demand.
D) use of surplus funds.
E) obtainment of a beachhead.

Question

Quizplus · Accepted Answer

Diseconomies of scale related to increased labor demand would represent a potential cost or disadvantage of an acquisition, rather than a gain. A, B, D, and E all represent potential gains from an acquisition, including tax benefits, cost efficiencies, access to additional funds or markets, and increased leverage in a specific industry or market.

All of the Following Represent Potential Gains from an Acquisition