Which One of the Following Statements Illustrates a Synergistic Effect

question 333

Multiple Choice

Which one of the following statements illustrates a synergistic effect of a merger?

• A) The revenue of the combined firm is equal to the revenue of the acquiring firm plus the revenue of the target firm.
• B) The costs of the combined firm exceed the costs of the acquiring firm plus the costs of the target firm.
• C) The tax liability of the combined firm is greater than the sum of the tax liabilities of each separate firm.
• D) The depreciation expense of the combined firm is equal to the depreciation expense of the acquiring firm plus the depreciation expense of the target firm.
• E) The capital requirements of the combined firm are less than the sum of the capital requirements of each separate firm.

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Definitions:

Circadian Rhythm

The natural internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Sleep Cycle

A progression through several stages of sleep, including REM (rapid eye movement) and non-REM stages, typically recurring multiple times throughout a night's sleep.

Alpha Waves

Brainwaves that are present when a person is relaxed and calm but still awake, typically with closed eyes, indicative of a state of restful alertness.

EEG

Stands for Electroencephalogram, a test that measures electrical activity in the brain to diagnose conditions like epilepsy or monitor sleep disorders.