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A Likely Reason for a Larger,listed Company to Acquire a Smaller,unlisted

Question 18

Multiple Choice

A likely reason for a larger,listed company to acquire a smaller,unlisted company is that:


A) the smaller company is undervalued.
B) smaller companies are associated with greater tax benefits.
C) the management of the smaller company may lack expertise in some areas.
D) smaller companies tend to have excess liquidity.

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