Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A) Synergy resulting from an acquisition generates gains in shareholder wealth beyond what they could achieve through diversification of their own portfolios.
• B) Private synergy results when the combination of two firms yields competencies and capabilities that could not be achieved by combining with any other firm.
• C) Although private synergy is easy to analyze, it is difficult to create.
• D) Private synergy is more likely when the two firms in an acquisition have complementary assets.

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Definitions:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Social Exchange Relationships

A theory that explains how human relationships are formed and maintained based on an exchange process aiming at maximizing benefits and minimizing costs.

Leader-Member Exchange Theory

A theory that emphasizes the two-way (dyadic) relationship between leaders and followers, proposing that the quality of this relationship influences outcomes.

Work-Related Matters

Issues, tasks, or topics that are directly connected to one's job or professional activities.