Which of the following is NOT a source of acquisition gains from cost reduction?
A) Unused debt capacity.
B) Economies of scale.
C) Complementary resources.
D) Economies of vertical integration.
E) Enhanced operating efficiencies.

Question

Quizplus · Accepted Answer

Unused debt capacity is not a source of acquisition gains from cost reduction. It is related to the financial structure of a company rather than operational cost reductions. Economies of scale, complementary resources, economies of vertical integration, and enhanced operating efficiencies all directly contribute to reducing costs through operational improvements and synergies.

Which of the Following Is NOT a Source of Acquisition