- CFA Exams
- CFA Level I Exam
- Study Session 8. Corporate Finance (2)
- Reading 23. Mergers and Acquisitions
- Subject 2. Motives for merger
CFA Practice Question
Select the motives for domestic mergers.
II. Revenue synergy.
III. Cost synergy.
IV. Product differentiation.
I. Diversification.
II. Revenue synergy.
III. Cost synergy.
IV. Product differentiation.
Correct Answer: I, II and III
Synergy includes revenue and cost synergy. IV is one of the unique motives for cross-border mergers.
User Contributed Comments 1
User | Comment |
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akirchner1 | Good one. |