Question

Emperador Distillers Inc., the largest liquor company in the Philippines and itself a subsidiary of Alliance Global Group Inc., acquired Bodega San Bruno S.A., a brandy company located in Spain. The move had the potential to create ___________ if the combined organization could save money by combining duplicate activities, such as human resource management and accounting, and both companies could make better use of their bottling facilities.a) market powerb) economies of scopec) synergyd) financial economies

Answer 1

Answer:

Option C Synergy

Explanation:

Synergy is the additional value that company generates for the shareholders as a result of extensive mutual co-operation in resource management. This extensive mutual co-operation results in lower costs of operations which means both the companies has gain increased profits as a result of synergy.

Synergy is the main reasons why companies acquires companies which is in the same line of business or whose operations are largely similar to those of the company.