Asked by
Minhthy trinh
on Nov 07, 2024
Verified
Which of the following is the best definition of synergy?
A) Combinations of firms that have been joined by merger, consolidation, or acquisition.
B) A public offer by one firm to directly buy the shares from another firm.
C) The positive incremental net gain associated with the combination of two firms through a merger or acquisition.
D) Agreement between firms to cooperate in pursuit of a joint goal.
E) Corporate takeover bid communicated to the shareholders through a stock exchange.
Synergy
The belief that the combined strength and efficiency of two unified companies will exceed the total of their individual contributions.
Incremental Net Gain
The additional net profit earned as a result of a particular decision or action, taking into account all relevant costs and revenues.
Merger
The combination of two or more companies into a single corporate entity, with the newly formed organization often taking on a new name.
- Understand the concept of synergy in mergers and acquisitions.
Verified Answer
MJ
Learning Objectives
- Understand the concept of synergy in mergers and acquisitions.