If Slick Shades, a sunglasses manufacturer, merges with Best Lens, a lens manufacturer, and the combined firm is able to reduce the number of human resource departments from two to one, the merger created _ _______.
A)technological interdependencies
B)synergies
C)a hold- up problem
D)managerial diseconomies

Question

Quizplus · Accepted Answer

The reduction in the number of human resource departments indicates that the merger has generated cost savings and improved efficiency. This is an example of synergy, where the combined firm is able to achieve more together than separately. Technological interdependencies refer to the interrelationships between different technologies or processes, while a hold-up problem and managerial diseconomies are not relevant to this scenario.

If Slick Shades, a Sunglasses Manufacturer, Merges with Best Lens