A Merger Adds Value by Creating Synergies

question 2

Multiple Choice

A merger adds value by creating synergies.Which of the following is not a possible source of synergy?

• A)Economies of scale
• B)Economies of vertical integration
• C)Combining complementary resources
• D)Diversification

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Definitions:

Annual Financial Advantage

The financial benefit that is realized on an annual basis from a particular investment or action, compared to alternative options.

Accepting Order

The process of agreeing to fulfill a customer's request for goods or services.

Monthly Financial Advantage

This term does not correspond to a widely recognized financial concept. However, it could refer to the monthly surplus or savings that a business or individual achieves after covering all their expenses.

Outside Supplier

A third-party entity or company that provides goods or services to another company, typically not affiliated with the purchasing company's internal structure.