When Mergers and Acquisitions Are Undertaken in Pursuit of Synergy

question 30

Multiple Choice

When mergers and acquisitions are undertaken in pursuit of synergy which of the following relationships describes the beliefs that guide managers. Let A and B represent the firms involved.

• A) value of A and B merged > value of A + value of B if the firms remain separate
• B) value of A and B merged = value of A + value of B if the firms remain separate
• C) value of A and B merged < value of A + value of B if the firms remain separate
• D) value of A minus B > value of A + value of B if the firms remain separate

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Definitions:

Shang

An early Chinese dynasty (around 1600–1046 BCE) known for its advanced bronze casting, development of a writing system, and ritual practices involving ancestor worship.

Asiatic Sumac

A type of shrub or small tree belonging to the genus Rhus, known for its colorful foliage and sometimes used for dye, tanning, or medicinal purposes.

Lacquer

A varnish-like substance made from the sap of the Asiatic sumac tree, used to decorate wood and other organic materials. Often colored with mineral pigments, lacquer cures to great hardness and has a lustrous surface.

Compositional Device

Techniques or strategies used by an artist to organize or structure the elements within an artwork, guiding the viewer's focus and shaping the overall effect or message.