- CFA Exams
- CFA Exam: Level II 2021
- Study Session 8. Corporate Finance (2)
- Reading 23. Mergers and Acquisitions
- Subject 3. Mergers and industry life cycle
CFA Practice Question
Select the correct statement(s):
II. The motivations of mergers depend on the type of merger.
III. The types of merger depend on what phase of the industry life cycle the company is in.
IV. The stages in an industry life cycle are based on their rates of growth.
I. The motivations of mergers depend on what phase of the industry life cycle the company is in.
II. The motivations of mergers depend on the type of merger.
III. The types of merger depend on what phase of the industry life cycle the company is in.
IV. The stages in an industry life cycle are based on their rates of growth.
Correct Answer: I, III and IV.
User Contributed Comments 3
| User | Comment |
|---|---|
| Thecatz89 | The type of mergers depend on the type of motivations ? |
| arudkov | yes. 4 example - cost reduction - horizontal M. |
| merc5559 | II The type of merger depend on the motivation of mergers |