Private Synergy

question 78

Multiple Choice

Private synergy:

• A) occurs in most related acquisitions and allows firms to see increased returns.
• B) is frequently achieved in conglomerates.
• C) is not easy for competitors to understand and imitate.
• D) is assessed by managers during the due diligence process.

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Definitions:

Innocent Misrepresentation

A misrepresentation made without fault or knowledge of its falsity, which may allow the misled party to void the contract but not claim damages.

Intentionally Deceptive

Deliberately misleading actions or statements designed to make someone believe something that is not true.

Ratification

The action of officially approving or confirming a previous act or decision, which was made without authorization or was otherwise questionable, to make it legally valid.

Voidable Contract

A contract that remains valid until one party, who is entitled to do so because of a defect in the contract formation, chooses to void it.