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Q. What do you mean by synergy?
Synergy: synergy refers to the greater combined value of merged firms than the sum of the values of individual units. It is something like one plus one more than two. It results from benefits other than those related to economics of scale. Operating economies are one of the various synergy benefits of merger or consolidation. The other instances which may result into synergy benefits include strong R and D facilities of one firm merged with better organized production facilities of another unit enhanced managerial capabilities the substantial financial resources of one being combined with profitable investment opportunities of the other etc.
Explain how the cash budget and the capital budget relate to pro forma financial statements. The cash budget demonstrates the projected flow of cash in and out of the firm fo
Why do firms enter an industry when they know that in the long run economic profit will be zero? Firms enter an industry while they suppose to earn economic profit. These shor
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