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A proposed acquisition may create synergy by doing all of the following except: increasing the market...

A proposed acquisition may create synergy by doing all of the following except:

increasing the market power of the combined firm.

improving the distribution network of the acquiring firm.

reducing the acquiring firm s distribution costs.

reducing the utilization of the acquiring firm's assets.

providing the combined firm with a strategic advantage.

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Answer #1

ANSWER : REDUCING THE UTILISATION OF THE ACQUIRING FIRM'S ASSETS. (Thumbs up please)

A proposed acquisition leads to different kinds of synergy or we call them benefits.

All other are benefits. except the fourth one, which is a disadvantage rather than benefit/synergy.

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Answer #2

The proposed purchase results in many benefits, or as we like to call them, synergies. The rest are all advantages. with the exception of the fourth, which poses a risk rather than a potential advantage.

answered by: Mulei chrysologus
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