A proposed acquisition may create synergy by:
I.increasing the market power of the combined firm.
II.improving the distribution network of the acquiring firm.
III.providing the combined firm with a strategic advantage.
IV.reducing the utilization of the acquiring firm's assets.
A)I and III only
B)II and III only
C)I and IV only
D)I, II, and III only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Synergy from an acquisition can come from increased market power, improved distribution networks, and strategic advantages. Reducing asset utilization is generally not considered a source of synergy.

A Proposed Acquisition May Create Synergy By