______Obtains If a Merger Results in Improvements in Any Business

question 13

Multiple Choice

______obtains if a merger results in improvements in any business function, including: (i) management; (vii) labor costs; (ii) production or distribution; etc.

• A)Operating synergy
• B)Financial synergy
• C)Business synchronization
• D)Economies of scope

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Definitions:

Debits

Entries made on the left-hand side of an account, representing an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Increase Side

Typically refers to the side of an account (debit or credit) used to record increases in that account, varying by the type of account.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, considering the account type (asset, liability, etc.).

Double-Entry Accounting

A bookkeeping system that records each transaction in two accounts, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced.