A Proposed Acquisition May Create Synergy By

question 44

Multiple Choice

A proposed acquisition may create synergy by:
I.increasing the market power of the combined firm.
II.improving the distribution network of the acquiring firm.
III.providing the combined firm with a strategic advantage.
IV.reducing the utilization of the acquiring firm's assets.

• A)I and III only
• B)II and III only
• C)I and IV only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations, mandating strict reforms to improve financial disclosures and prevent accounting fraud.

Financially Burdensome

Describing a situation or requirement that imposes a significant financial strain or expense on an individual or organization.

Legislation

Laws that have been enacted by a governmental body or legislature.

Business Legislation

Laws that govern how businesses can operate, including regulations on company formation, taxation, and employment.