5.Why a profitable firm might consider acquiring a firm that has had large recent losses and will continue to have losses into the near future?

Select one:

a. Tax Benefits

b. reduce costs of good sold

c. Increase Assets

d. Increase growth

7.Now assume that the owner of a private company is trying to sell her company. Which of the following buyers is likely to offer the highest price?

Select one:

a. A private equity fund

b. A private owner

c. A publicly traded company

d. Unclear

9.Diversification is a dubious reason for mergers of public companies because it is easier and cheaper for the stockholder to diversify than for the corporation.

Select one:

a. False

b. True