The Positive Incremental Net Gain Associated with the Combination of Two

question 162

Multiple Choice

The positive incremental net gain associated with the combination of two firms through a merger or acquisition is called (the) ___________.

• A) Agency conflict.
• B) Goodwill.
• C) Merger cost.
• D) Consolidation effect.
• E) Synergy.

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Definitions:

Unforeseen Expenses

Costs that were not planned or predicted, often arising suddenly and requiring immediate financial attention.

Ex-spouse

A term referring to a former husband or wife from whom one is divorced.

Alimony

Monetary payments by one ex-spouse to the other after a divorce (sometimes called spousal maintenance).

Psychic

A person who claims to use extrasensory perception (ESP) to identify information hidden from the normal senses, or someone deeply sensitive to spiritual forces.