It generates a positive net present value to the shareholders of an acquiring firm.
<h3>Why Do Companies Merge With or Acquire Other Companies?</h3>
Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
KEY LESSONS
- Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
- A merger is the joining of two companies in which one of the companies ceases to exist after being absorbed by the other.
- A merger occurs when one company acquires a majority stake in the target company, which keeps its name and legal structure.
To learn more about merger and acquisition from the given link
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Answer:
$180,000
Explanation:
Given that
Current E & P = $240,000
Distribution to Larry = $450,000
The computation of current E & P is allocated to Larry's distribution is shown below:-
Current E & P is allocated to Larry's distribution = (Current E & P × Distribution to Larry) ÷ Total distribution
= ($240,000 × $450,000) ÷ $600,000
= $108,000,000 ÷ $600,000
= $180,000
Answer:
A. Political
Explanation:
PESTEL analysis is an instrument used to analyze and monitor the macro economic environmental factors than can have an effect on the organization.
PESTEL is an acronym for
P - Political
E - Economic
S - Social
T - Technology
E - Environmental
L - Legal
Political Factor - This is all about the role government plays in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions etc.
Studying this would enable organizations respond better to current trends and prepare better for future legislations.