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

While reducing taxes paid by shareholders may be a benefit of an acquisition, it is not typically a primary rationale or motivation for making an acquisition. The other options listed (increasing market power, overcoming entry barriers, and increasing diversification) are more commonly cited as reasons for pursuing acquisitions.

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