The argument that mergers are valuable because they create revenue synergies is based on
A)the opportunity to expand into less than fully competitive markets.
B)the diversification effects of combining dissimilar asset and liability portfolios.
C)realizable economies of scope.
D)the enhancement of revenues by acquiring a bank in a growing market.
E)the opportunity to expand into less than fully competitive markets, the diversification effects of combining dissimilar asset and liability portfolios, and the enhancement of revenues by acquiring a bank in a growing market.

Question

Quizplus · Accepted Answer

The argument for revenue synergies in mergers encompasses expanding into less competitive markets, diversifying asset and liability portfolios, and enhancing revenues through acquisitions in growing markets. These factors collectively contribute to the potential for increased revenue, making option E the comprehensive choice that encapsulates all relevant aspects.

The Argument That Mergers Are Valuable Because They Create Revenue