The Positive Incremental Net Gain Associated with the Combination of Two

question 15

Multiple Choice

The positive incremental net gain associated with the combination of two firms through a merger or acquisition is called:

• A) goodwill.
• B) the merger cost.
• C) the consolidation effect.
• D) synergy.

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Definitions:

Geocentric View

An approach to international business that sees similarities and differences everywhere and seeks to build strategies that leverage global efficiencies without being blind to local needs.

Transnational Strategy

A strategy that seeks efficiencies of global operations with attention to local markets.

Mutual Benefit

A situation or agreement where all parties involved gain advantages or profits.

Related Diversification

A business growth strategy in which a company expands its operations into areas that are similar to its existing lines of business.