Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and to reduce the fixed costs assigned by corporate headquarters. This is an example of
A)diversification.
B)merger.
C)consolidation.
D)synergy.

Question

Quizplus · Accepted Answer

This scenario is an example of synergy, where two divisions work together to achieve greater efficiency and cost savings by sharing resources, such as manufacturing facilities.

Two Divisions of a Company Decide to Use the Same