The Argument That Mergers Are Valuable Because They Create Revenue

question 62

Multiple Choice

The argument that mergers are valuable because they create revenue synergies is based on

• A)the opportunity to expand into less than fully competitive markets.
• B)the diversification effects of combining dissimilar asset and liability portfolios.
• C)realizable economies of scope.
• D)the enhancement of revenues by acquiring a bank in a growing market.
• E)the opportunity to expand into less than fully competitive markets, the diversification effects of combining dissimilar asset and liability portfolios, and the enhancement of revenues by acquiring a bank in a growing market.

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Definitions:

Success Percentage

The proportion of attempts or operations that achieve their intended outcome, often expressed as a percentage.

Succession Management Programs

Strategic plans implemented by organizations to identify, develop, and retain talent for filling future leadership or key roles.

Future Leaders

Individuals within an organization who have been identified as having the potential to take on significant leadership roles in the future, usually as part of talent development programs.

Succession Management

A strategy for identifying and developing future leaders within an organization.