Question

One of the key motives for mergers is​ ________. A. reducing the marginal tax rate B. to sell the assets of the target company to increase the cash balance C. increasing additional recaptured depreciation D. taking advantage of the other​ firm's tax loss carryforward

Answer 1

The correct answer is D

Step-by-step explanation:

Merger is the defined as the corporate strategy which combines different companies or organization into a single or one company so that to enhance the operational as well as financial strengths of both the companies and carry out the business as one.

The motive or purpose is to takeover the business as the economic gains results through merging the resources of the two companies.

So, the primary or main motive for mergers is to take the advantage or benefit of the other company's tax loss carryforward.