Which of the following is NOT a valid reason for a company to seek external growth through mergers?
A)to avoid paying dividends
B)to achieve greater diversification
C)to take advantage of the tax-loss carryforwards
D)to maintain availability of raw materials

Question

Quizplus · Accepted Answer

Avoiding paying dividends is not a valid reason for a company to seek external growth through mergers. Mergers are usually aimed at achieving various benefits such as increased market share, cost savings, and synergies, among others. Avoiding paying dividends can be achieved through different means, such as reinvesting profits in the business or using them to pay down debts.

Which of the Following Is NOT a Valid Reason for a Company