Which concept describes the interaction of two or more activities, creating a combined effect greater than the sum of their individual efforts?

• A. Synergy
• B. Diversification
• C. Institutional collectivism
• D. Future orientation

Answer: (A)

Synergy is when two or more activities, actions, or units interact in a way that produces a total effect greater than the sum of their separate effects. In entrepreneurship and management, this shows up when collaboration across functions or partners creates more value together than each could achieve alone. For example, pairing product development with targeted marketing can reveal customer needs early and shape features in a way that drives stronger adoption than either team could achieve separately.

This description fits the scenario because it emphasizes the amplified impact that results from combining efforts.

Diversification focuses on spreading risk by having a variety of assets or products rather than generating a super-additive effect from collaboration. Institutional collectivism is about cultural norms and the emphasis on collective action, not the interaction effect itself. Future orientation is about planning for the long term, not the enhanced outcome from combining activities.