21-115 the Argument That Mergers Are Valuable Because They Create

question 139

Multiple Choice

21-115 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 affects 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)Answers A,B,and D only.

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Definitions:

Poor

A term used to describe individuals or groups who lack financial resources or sufficient income to meet basic living necessities.

Newly Industrialized Countries

Countries that are transitioning from primarily agricultural to primarily manufacturing and industrial activities.

Neo-Capitalist Nations

Countries that have adopted updated or modified forms of capitalism, reflecting a blend of traditional capitalist principles with new policies or social systems.

Industrialize

The process by which a society or country transforms itself from a primarily agricultural society into one based on the manufacturing of goods and services.