Asked by Andrea Anguiano on Jun 06, 2024
Verified
The term used to describe the benefits produced by a merger or acquisition is
A) partnership.
B) leverage.
C) synergy.
D) profit.
Synergy
Notion that a combined firm is worth more than the two firms are individually.
Merger
Agreement in which two or more firms combine to form one company.
Acquisition
Agreement in which one company purchases another.
- Determine the diverse avenues of capital available to businesses and their subsequent effects.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
C
Explanation :
Synergy refers to the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. This is a key reason why companies choose to merge or acquire others.
Learning Objectives
- Determine the diverse avenues of capital available to businesses and their subsequent effects.
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