The Positive Incremental Net Gain Associated with the Combination of Two

question 60

Multiple Choice

The positive incremental net gain associated with the combination of two firms through a merger or acquisition is called:

• A)the agency conflict.
• B)goodwill.
• C)the merger cost.
• D)the consolidation effect.
• E)synergy.

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Definitions:

Malingering

Intentionally faking illness to achieve some external gains, such as financial compensation or military deferment.

Financial Compensation

Payment provided to individuals or groups as restitution for loss, injury, or suffering.

Laxatives

Substances that are used to stimulate bowel movements or increase the bulk of feces, often used to treat constipation.

Anticoagulant Medication

Drugs used to prevent blood clot formation or to manage existing clots, reducing the risk of stroke and heart attack.