Final answer:
An unprofitable company can be an attractive acquisition target due to its potential tax benefits, high growth potential, strong customer base, or possession of innovative products.
Step-by-step explanation:
What makes an unprofitable company an attractive target for acquisition? There are several reasons including potential tax benefits, high growth potential, a strong customer base, and innovative products. Potential tax benefits can arise from utilizing the acquired company's losses to offset taxable income. High growth potential could turn the unprofitable company around, making it a valuable asset. A strong customer base may provide steady inflows of revenue and opportunities for cross-selling products. And lastly, innovative products may offer a competitive edge in the market, leading to future profits.