________ refers to value achieved through the combination of market entry, risk sharing, and learning potential that is greater than what the firm could have done alone.

Question

Quizplus · Accepted Answer

Synergy refers to the creation of value that is greater than the sum of the individual parts. In the context of partnerships, it refers to the combination of market entry, risk sharing, and learning potential that is greater than what the firm could have achieved alone. Shared risk and knowledge are important elements of achieving synergy, but synergy itself is the overarching concept that encompasses these elements. Scale economy refers to the cost advantages that firms enjoy as they increase their scale of operation. While it can be a benefit of partnerships, it is not the same as the concept of synergy.

________ Refers to Value Achieved Through the Combination of Market