A merger adds value by creating synergies.Which of the following is not a possible source of synergy?
A)Economies of scale
B)Economies of vertical integration
C)Combining complementary resources
D)Diversification

Question

Quizplus · Accepted Answer

Diversification is not a possible source of synergy as it refers to expanding into new and unrelated markets or products, which may not necessarily result in any significant synergies or cost savings. The other options - economies of scale, economies of vertical integration, and combining complementary resources - all have the potential to generate synergies and improve the performance of the merged entity.

A Merger Adds Value by Creating Synergies