Synergy exists when:
A) cost savings are realized through improved allocations of financial resources based on investments inside or outside the firm.
B) two units create value by utilizing market power in their respective industries.
C) firms utilize constrained related diversification to build an attractive portfolio of businesses.
D) the value created by business units working together exceeds the value that those same units create when working independently.

Question

Quizplus · Accepted Answer

Synergy occurs when the combined efforts of business units result in greater value than if they operated separately, as described in option D.

Synergy Exists When