Which of the following is NOT a financial motive, but rather an operating motive for mergers and consolidations?
A) The portfolio diversification effect
B) Tax loss carryforward
C) Greater financing capability
D) Synergy

Question

Quizplus · Accepted Answer

Synergy is considered an operating motive for mergers and consolidations because it involves combining resources, expertise, and capabilities to improve operations and achieve greater efficiency. The other options listed (portfolio diversification, tax loss carryforward, and greater financing capability) are financial motives because they all relate to improving the financial performance or position of the merged or consolidated entity.

Which of the Following Is NOT a Financial Motive, but Rather