What is synergy?

A. When the organization is providing a product to the customer that perfectly suits their requirements

B. When the parts of an organization are combined and managed in such a way that the drawbacks exceed those which would result if the parts were operating separately

C. When the parts of an organization are combined and managed in such a way that the benefits exceed those which would result if the parts were operating separately

D. When the parts of an organization are combined and managed in such a way to reduce costs

Answer: Option C

Solution(By Examveda Team)

When the parts of an organization are combined and managed in such a way that the benefits exceed those which would result if the parts were operating separately is known as synergy. Synergy is the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Synergy is a term that is most commonly used in the context of mergers and acquisitions (M&A).