Question

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?

Answer 1

Decrease in costs and increase in revenues due to increased collaboration between the two units is an example of "synergy".

Step-by-step explanation:

Synergy occurs after a merger or acquisition. When two organizations merge and become one larger organization, then employees work together to achieve efficiency which results in a decrease in costs or increase in revenues.

In such a case, the resulting organization makes more profit than the two organizations would have been able to make, on their own, before they merged.

This is known as "synergy".