Consider the following two statements: (i) The main purpose of vertical acquisitions is to make technology transfer of closely related
Operating activities easier.
(ii) Acquisitions can result in tax reductions through the use of unused equity holdings.
A)(i) is correct, (ii) is incorrect.
B)(ii) is correct, (i) is incorrect.
C)Both (i) and (ii) are correct.
D)Both (i) and (ii) are incorrect.
E)(i) and (ii) only hold in a hostile takeover.

Question

Quizplus · Accepted Answer

Vertical acquisitions are primarily aimed at controlling the supply chain, not just technology transfer. Acquisitions can lead to tax benefits, but not specifically through unused equity holdings.

Consider the Following Two Statements: (I) the Main Purpose of Vertical