The Argument That Mergers Are Valuable Because They Create Revenue

question 62

Multiple Choice

The argument that mergers are valuable because they create revenue synergies is based on

• A)the opportunity to expand into less than fully competitive markets.
• B)the diversification effects of combining dissimilar asset and liability portfolios.
• C)realizable economies of scope.
• D)the enhancement of revenues by acquiring a bank in a growing market.
• E)the opportunity to expand into less than fully competitive markets, the diversification effects of combining dissimilar asset and liability portfolios, and the enhancement of revenues by acquiring a bank in a growing market.

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Definitions:

Venation

The pattern of veins in a leaf or insect's wing, which support the structure and transport fluids, like nutrients and water.

Identification

The process of recognizing or establishing the identity of a person or thing, often through specific characteristics or markers.

Blades

Thin, flat sections of metal, used as tools or parts of machines for cutting, shaping, or scraping.

Vascular Cambium

A layer of cells in plants that produces vascular tissues, contributing to the secondary growth in stem and root diameters.