0 x Apts Keep the Highest/t 1. Rationale for mergers Academics and practitioners have identified several major reasons that drive firm' merger, acquisition, and breakup decisions NZ Identify the term or motive for the merger and acquisition with its description. Term or Motive for Merger Description A highly profitable firm in a high tax bracket acquires a firm with substantial accumulated tax losses If two firmi merged, the value of the new company would exceed the current pre-merger values of the individual firms. A merger is driven by the managers desire to increase the size of the firm rather than by strict economic analysis During the 1980s, Hallmark acquired by & Smith (manufacturers of Crayola Crayons and Magic Markers) and Univision (a Spanish-language TV network) to expand its line of products in different segments and protect against the seasonal nature of its core greeting card business. A Grado It Now Save & Continue Continue without saving