Two Major Sources of Power Based on Position in an Organization

question 21

True/False

Two major sources of power based on position in an organization: (1) legitimate power and (2) power based on control of resources.

---

Definitions:

Financial Merger

The combination of two or more companies, primarily through the acquisition of stock, to form a single financial entity.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Undervalued Target

A company or investment asset that is available for purchase at a price less than its intrinsic value.

Congeneric Merger

A type of acquisition where two companies operate in the same industry but do not offer the same products or services.