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QUESTION 14 Research and development is a driver of business combinations for all of the following...

QUESTION 14

  1. Research and development is a driver of business combinations for all of the following reasons except?

    a.

    Lower operating costs.
    b.

    Acquisition of intangible assets.
    c.

    Operating loss carryforwards.
    d.

    Reduced business risk of acquiring established product lines.
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Answer #1

Answer: A) Lower Operating Cost

Business combinations Mergers and Acquisitions are normally done with the of the driving forces (Market, technology, products Ect). Research and development are one of the driving force through this firm can get new products, technologies and intangible assets of the target company. The firm is not intended to reduce the operating cost if the driving force for the business combination is Research and Development

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