Synergy is deﬁned as the:
A) Positive incremental net gain associated with the combination of two ﬁrms.
B) Entering into a new industry in search of proﬁtable opportunities.
C) Economies of scale that relate to the average cost of goods produced.
D) Process of removing existing managers after a successful takeover.
E) Beneﬁt of the lockup agreement.

Question

Quizplus · Accepted Answer

Synergy refers to the positive incremental net gain that results from the combination of two or more firms, such as the increased market power and efficiencies that can be achieved through a merger or acquisition. The other choices do not accurately reflect the definition of synergy.

Synergy Is Deﬁned as The