Asked by Morgan Kollman on May 31, 2024
Verified
What is one financial benefit of a merger?
A) tax advantages
B) reduced debt load
C) increased stock price
D) higher productivity
Tax Advantages
Financial benefits derived from tax laws, such as deductions or credits, which reduce the tax liability for individuals or businesses.
Reduced Debt
A financial condition indicating a decrease in the amount of money owed by an individual, company, or government.
- Identify the financial and functional benefits of corporate mergers.
Verified Answer
RS
Rachel StollaJun 02, 2024
Final Answer :
A
Explanation :
One financial benefit of a merger is tax advantages. Often, after a merger, a larger company can enjoy lower tax rates or tax breaks. This can lead to increased profits and shareholder value.
Learning Objectives
- Identify the financial and functional benefits of corporate mergers.