1.

Select all that is true.

Select one or more:

a. The synergy of merger is the economies of scale resulting from the merged firms' lower overhead.

b. Consolidation involves the combination of two or more firms, and the resulting firm maintains the identity of one of the firms.

c. Vertical merger is a merger of two firms in the same line of business.

d. LBOs are an example of a financial merger undertaken to create a high-debt private corporation with improved cash flow and value.