a)In corporate spheres, the existence of corporate taxes has led to the risk of bankruptcy. Using appropriate theories validate this assertion. (10 Marks)

b) Mergers and acquisitions are evaluated beforehand to determine the net economic advantage they create and this forms a basis for a decision on whether to approve or disapprove any such business combination. However, there are several overriding factors that corporate leaders, investment bankers and other stakeholders must consider beyond the mere synergies that accompany mergers and acquisitions. Evaluate these factors showing how they may alter a decision that appears to be persuasive at face value. (20 Marks