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When the return on investment for each division of a corporation is greater than what the return would be if each division were an independent business, that corporation is said to have achieved A. synergy. B. its hurdle rate. C. the status of a true conglomerate. D. Stage III. E. a leveraged buyout.

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Answer: A. Synergy

Explanation:

Apart from being a great sounding word, Synergy is a concept that is usually used for mergers between 2 or more companies to show that the value and performance of combined companies can be greater than them working independently.

In this scenario however, Synergy would refer to each division of this company working better together as opposed to apart.

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