Asked by Kalindi Schneider on May 28, 2024
Verified
An improvement in the marketing of the firm's products is a possible source of cash flow benefits derived from a merger.
Cash Flow
A measure of the net amount of cash and cash-equivalents being transferred into and out of a business.
Merger
The process by which two or more companies combine their operations, typically to achieve synergies, expand their market reach, or enhance competitiveness.
- Recognize the sources of cash flow improvements in mergers.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
True
Explanation :
Improving the marketing of a firm's products can lead to increased sales and market share, which in turn can generate additional cash flow for the company. This is one of the potential benefits of a merger, as the combined entity may have better resources, strategies, or market presence to enhance product marketing efforts.
Learning Objectives
- Recognize the sources of cash flow improvements in mergers.