Synergy Exists When

question 115

Multiple Choice

Synergy exists when:

• A) cost savings are realized through improved allocations of financial resources based on investments inside or outside the firm.
• B) two units create value by utilizing market power in their respective industries.
• C) firms utilize constrained related diversification to build an attractive portfolio of businesses.
• D) the value created by business units working together exceeds the value the units create when working independently.

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Definitions:

Gas Station

A gas station is a facility that sells fuel and engine lubricants for motor vehicles.

Cubic Yard

A unit of volume used typically in the United States for materials such as concrete, measuring 3 feet long by 3 feet wide by 3 feet high.

Poisson Distribution

A probability distribution that represents the likelihood of a specific number of occurrences happening within a predetermined time or space interval.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events occur with a known constant mean rate and independently of the time since the last event.