Author Question: A merger between two companies in unrelated fields of business A) will always lead to economies ... (Read 108 times)

deesands · **on:** Jul 1, 2018

A merger between two companies in unrelated fields of business

A) will always lead to economies of scale.
B) will generally increase the value of the unified firm compared to the value of the two companies before the merger because of the benefits of diversification.
C) may not have any synergistic effects.
D) will necessarily lead to an increase in the market power of the merged company.

Question 2

Which of the following would not be considered a synergistic benefit from a merger?

A) an improvement in distribution systems
B) economies of scale in production
C) decreased cost of capital
D) None of the above