Exam IIA-CIA-Part2 All QuestionsBrowse all questions from this exam
Question 85

Which of the following would be the least important reason for a company to merge with another company?

    Correct Answer: B

    While reasons such as diversifying risk, reducing labor costs, or increasing stock prices offer direct and substantial financial benefits to a company, merging strictly as a response to new government policy is less likely to be a primary driving factor. Companies typically merge to achieve specific strategic objectives that enhance their competitive advantage and financial footing, rather than simply reacting to external policy changes.

Discussion
balqis32

why diversify risk?

Rg7373

This is a part 1 question