If Two Merged Firms Are Shown to Have a Higher

question 74

Multiple Choice

If two merged firms are shown to have a higher combined market value than the sum of the individual market values, then:

• A)Economic gains are said to have taken place
• B)The firms were previously underpriced
• C)The merger provides diversification to investors
• D)There is no cost involved in the merger

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Definitions:

Chromosome

A structure found in the nucleus of a cell, made from DNA and proteins, containing genetic information.

Intersex

A term that refers to individuals who are born with genitalia, chromosomes, and/or reproductive organs that do not fit typical binary notions of male or female bodies.

Ambiguous Genitalia

A condition where a newborn's external genitals do not appear clearly male or female.

Sex

Your sex depends on your genetic makeup—specifically, whether your sex chromosome is XX (female), XY (male) or X, XXY, XXYY, and so on. The latter sex chromosomes often result in a person who does not fit conventional male or female sex categories.