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:

Deductive Argument

An argument that claims its conclusion necessarily follows from the premises.

Inductive Argument

An argument that only claims that its conclusion probably follows from the premise.

Definitional Premise

A premise containing the definition of a key term.

Analogies

Comparisons between two things, typically for the purpose of explanation or clarification.