Practicing Success
When a firm with accumulated losses or unabsorbed depreciation merges with a profitable firm and the combined firm can set off such losses against its profits is referred as _____. |
Operating synergy Economic synergy Tax Shield Tax Rebate |
Tax Shield |
When a firm with accumulated losses or unabsorbed depreciation merges with a profitable firm and the combined firm can set off such losses against its profits, a financial synergy, known as tax shield, occurs. |