Which of the Following Statements Is False

question 116

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) Private synergy is easy for competitors to understand and imitate.
• D) Private synergy is more likely when the two firms in an acquisition have complementary assets.

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Definitions:

Improvidence

Lack of foresight or care in managing finances, often leading to unnecessary expenditure or loss.

Capacity

The legal ability of a party to enter into a contract.

Severely Intoxicated

A state of being under the influence of alcohol or drugs to a significant degree, impacting cognitive and physical abilities.

Capacity

In law, the ability of an individual to enter into a contract, evidenced by their being of sound mind and of legal age, or by a business to enter into agreements.