Synergy Is Created by the Efficiencies Derived from Economies of Scale

question 55

True/False

Synergy is created by the efficiencies derived from economies of scale and economies of scope and by sharing resources across the businesses in the merged firm.

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Definitions:

Financial Management

The practice of planning, directing, monitoring, organizing, and controlling the monetary resources of an organization or individual.

HR Management

The strategic approach to the effective management of people in an organization, focusing on policies and systems to improve employee performance and satisfaction.

Operations Management

The area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Routine

A sequence of actions regularly followed, forming a habitual or fixed procedure.