A Proposed Acquisition Is Most Apt to Create Synergy By

question 36

Multiple Choice

A proposed acquisition is most apt to create synergy by:

• A) decreasing the market power of the combined firm.
• B) disbanding the distribution network of the combined firm.
• C) eliminating any strategic advantages of the target firm.
• D) increasing the utilization of the acquiring firm's assets.
• E) increasing the overhead costs.

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Definitions:

Protect Assets

Measures and strategies implemented by a business or individual to safeguard tangible and intangible assets from loss, theft, or damage.

Internal Control Systems

Procedures and mechanisms implemented by a business to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.

Cost-Benefit Principle

This principle involves analyzing whether the cost of an action outweighs its benefits before proceeding with the decision.

Technologically Advanced

Characterized by the use of the latest technology, innovations, and systems to improve efficiency and capability.