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 overcome entry barriers.
D) to increase diversification.

Question

Quizplus · Accepted Answer

Although tax benefits may be a potential outcome of an acquisition, it is not a primary rationale for making an acquisition. Rather, the primary rationales include increasing market power, overcoming entry barriers, and increasing diversification to enhance competitiveness and profitability.

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