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:

Strong Base

A substance that can readily accept hydrogen ions and is completely or nearly completely dissociated in aqueous solution, resulting in a high pH.

Sudan IV

A lysochrome (fat-soluble dye) used in histology to stain lipids, triglycerides, and lipoproteins in cells and tissues.

Colorimetric PH Indicator

A chemical compound that changes color in response to changes in pH, used to determine the acidity or alkalinity of a solution.

Neutral Substance

A chemical compound that is neither acidic nor basic in nature, often having a pH level of around 7.