Which of the Following Statements Is FALSE

question 91

Multiple Choice

Which of the following statements is FALSE?

• A) Synergy resulting from an acquisition generates gains in shareholder wealth beyond what they could achieve through diversification of their own portfolios.
• B) Private synergy results when the combination of two firms yields competencies and capabilities that could not be achieved by combining with any other firm.
• C) Private synergy is easy for competitors to understand and imitate.
• D) Private synergy is more likely when the two firms in an acquisition have complementary assets.