Question

Which of the following statements are correct. More than one is possible. In a merger with...

Which of the following statements are correct. More than one is possible.

In a merger with synergies the post-merger value will exceed the sum of the two separate companies' pre-merger values.

Synergistic benefits can arise from economies of scale.

Synergistic benefits cannot arise from financial economies.

Synergistic benefits can arise from laying off excess employees.

Homework Answers

Answer #1

Ans:

The following statements are correct.
In a merger with synergies the post-merger value will exceed the sum of the two separate companies' pre-merger values.
Synergistic benefits can arise from economies of scale.
Synergistic benefits can arise from laying off excess employees.

Explanation:

Some Organisation may have excess employees. ,So unwanted employees can be reduced in order reduce the expenses

Synergistic benefits can arise from economies of scale.i.e having different skill sets or combinations of resources lead to economies of scale and gain of market advantage like combination different machines leads to reduce the cost thereby boost economies of scale

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