The First State Bank of Wyoming wants to acquire the Second National Bank of South Carolina.It wants to do this because the management feels that South Carolina faces very different economic conditions than Wyoming and that this acquisition will reduce variability in earnings in the future.What motive for a merger does this most likely reflect?

Question

Quizplus · Accepted Answer

The motive for this merger is to reduce variability in earnings, which suggests that the primary goal is to reduce risk. Therefore, the best choice is B) Risk reduction.

The First State Bank of Wyoming Wants to Acquire the Second