A Merger That Allows a Firm to Access a Cheaper

question 80

Multiple Choice

A merger that allows a firm to access a cheaper way of financing its projects is:

• A) Financial economies of scope
• B) Financial economies of scale
• C) Financing synergy
• D) Tax benefits

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Definitions:

Bilateral Contract

A legal agreement in which each of the parties to the contract makes a promise to the other or undertakes a certain obligation.

Unilateral Contract

An agreement where one party makes a promise, but the other side does not reciprocate with a promise but with an action.

Internet Communication

The exchange of information or messages between users through the internet, utilizing various platforms and technologies.

Gratuitous Promise

A promise for which no consideration is given; not legally binding unless put in a deed or supported by some form of consideration.