Which of the following is NOT an example of a revenue enhancement that is a result of a merger?
A) The revenue stream of the acquired firm becomes more stable because the target firm has different risk characteristics.
B) The merger may expand the target firm's operations into areas that are not fully competitive.
C) The merger may create cost synergies.
D) All of the options are examples of a revenue enhancement that is a result of a merger.

Question

Quizplus · Accepted Answer

Revenue enhancements refer to strategies or outcomes that increase the income of a firm. Cost synergies, on the other hand, are related to reducing expenses through efficiencies gained from the merger, such as reducing redundant positions or leveraging economies of scale. Therefore, cost synergies are not an example of revenue enhancement but rather a form of cost reduction.

Which of the Following Is NOT an Example of a Revenue