Questions:
Question 1
In a merger:??
One firm buys controlling interest in another firm.
Two firms agree to integrate their operations on a relatively coequal basis.
Two firms combine to create a third separate entity that seeks to conduct one given function.
Two firms agree to share certain information, but their operations remain independent.
Question 2
A (n) ________ is when one firm buys a controlling, or 100% interest, in another firm.??
merger
acquisition
takeover
restructuring
Question 3
The process of acquiring other firms in the same industry is called:??
A horizontal acquisition.
A vertical acquisition.
An in-type acquisition.
A diagonal acquisition.
Question 4
The process of acquiring suppliers or distributors of the acquiring firm is called:??
A horizontal acquisition.
A vertical acquisition.
An in-type acquisition.
A diagonal acquisition.
Question 5
When the target firm's managers oppose an acquisition, it is referred to as a(an):??
Stealth raid.
Adversarial acquisition.
Hostile takeover.
Disputed takeover.
Question 6
The process of evaluating a target firm for acquisition is referred to as:??
Competitive intelligence
Acquisitional analysis
Due Diligence
None of the above
Question 7
A leveraged buyout refers to:??
A firm restructuring itself by selling off unrelated units of the company's portfolio.
A firm pursuing its core competencies by seeking to build a top management team that comes from a similar background.
A restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.
An action where the management of the firm and/or an external party buys all of the assets of a business financed largely with equity.
Question 8
Synergy exists when:??
Two units are combined into one.
Two units create value by utilizing market power in their respective industries.
Firms utilize constrained related diversification to build an attractive portfolio of businesses.
The value created by business units working together exceeds the value the units create when working independently.
Question 9
_____________ is a reduction in the number of a firm's employees and, sometimes, in the number of its operating units.??
Downscoping
Downsizing
Acquisition
Leveraged buyout
Question 10
__________________ is a strategy through which a firm changes its set of businesses or its financial structure.??
Expanding
Downsizing
Reducing?
Restructuring