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:

Official Duties

Official duties refer to the tasks and responsibilities that are assigned to a public officer, government employee, or holder of an official position as part of their role.

Impression Management

The process by which individuals attempt to control the impressions others form of them, especially in social contexts.

Feeling Rule

Social norms that dictate the appropriate emotions to be expressed in various situations, shaping how individuals manage and display their emotional responses.

Collectivist Cultures

Societies that prioritize the needs and goals of the group over individual desires, emphasizing interdependence, cooperation, and social harmony.