The Best Rationale for a Merger Is That the Value

question 76

Multiple Choice

The best rationale for a merger is that the value of the firms combined is:

• A)at least equal to the sum of their separate values.
• B)greater than the sum of their separate values.
• C)less than the sum of their separate values.
• D)None of the above

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Definitions:

Corridor Principle

A theory suggesting that once entrepreneurs embark on a venture, they are likely to encounter unforeseen opportunities and paths that were not visible to them before starting the venture.

Logistics

The management of the flow of goods, information, and other resources between points of origin and consumption to meet customer requirements.

Fast-Growth Start-Ups

Young companies that experience rapid growth in terms of revenue and market size due to innovative products or services.

Startup

A company in the initial stages of operations, often characterized by innovations and fast growth, aiming to meet a marketplace need by developing or offering a new product or service.