judithbryan2671 judithbryan2671

17-03-2020
Business

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The First National Bank of Edmond wants to acquire the First State Bank of Oklahoma City. Management believes that this merger will enhance their reputation in the labor market because the new firm will be twice as big as what they are managing now. In addition, the First National Bank of Edmond has promised to pay $10,000,000 in compensation to the top managers of the First State Bank of Oklahoma City and help them cover any resulting tax liability. What motive for a merger does this most likely reflect?

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sadddamkashmiri801 sadddamkashmiri801

22-03-2020

Answer:

Maximizing management welfare

Explanation:

The reason is that the First National Bank of Edmond is a Non Profit organization and its primary mission is to serve people which it is doing by acquiring the First State Bank to save the asset of the people of Oklahoma City and is also paying the remainder of the tax liability and the bulk amount to compensate the top management.

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