The Synergies of a Merger Add So Much Value to the Combined

question 42

True/False

The synergies of a merger add so much value to the combined firm that, upon announcement of a merger, the stock prices of both the target and the acquirer increase substantially.

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Definitions:

New Culture

The process or result of developing and integrating new set of beliefs, values, and practices within an organization or community.

Social Order

The set of rules, norms, and standards that govern behavior in societies, ensuring predictability and functionality among its members.

Organizational Instruction

Guidelines or directives issued by an organization to guide actions and decisions of its members or employees.

Socialization

Socialization is the process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or culture.