The First National Bank of Edmond wants to acquire the First State Bank of Oklahoma City.The management believes that this merger will enhance their reputation in the labor market because the new firm will be twice as big as what they are managing now.In addition,the First National Bank of Edmond has promised to pay $10,000,000 in compensation to the top managers of the First State Bank of Oklahoma City and help it cover any resulting tax liability.What motive for a merger does this most likely reflect?

Question

Quizplus · Accepted Answer

The promise to pay $10,000,000 in compensation to the top managers of the First State Bank of Oklahoma City and help cover any resulting tax liability indicates a motive to maximize management welfare. This action is primarily focused on benefiting the managers rather than directly aiming at improving operational efficiencies, reducing risks, or enhancing profit potential.

The First National Bank of Edmond Wants to Acquire the First