Solution:Assertion (A): Acquiring firms often are willing tot pay a price higher than the status quo value of assets for the right to control management of target firms. Therefore, Assertion (A) is the true statement.
Reason (R): The value of control stems from the change that can be made to improve performance by debottlenecking capacity, streamlining and strengthening operations, managerial systems and processes.
Therefore, Reason (R) is the also true statement and (R) is the correct explanation of (A).