1. Jervis Corporation wants to buy the Conner Company because they are competitors and Jervis believes it can run Conner in such a way to make it much more valuable in terms stock price. This would be the _____ motive for an acquisition.
a. Managerialism
b. Synergy
c. Sitting on a Gold Mine or Kick in the Pants
d. Efficiency
2. Google and Yahoo want to merge. They file as approrpriate with the U.S. Department of Justice (DOJ). Both companies do business in dozens of countries. Does this mean the companies have a green light, even though they sell services in many countries?
a. Yes. By international agreement, if the DOJ approves the merger as not having anticompetitive effects, then it is cleared in other countries as well.
b. Yes. Since the two companies are headquartered in the U.S., the DOJ is the only agency necessary to file with.
c. No. Various parts of the world have their own laws and procedures for determining whether two companies, foreign or domestic, will gain approval to operate within their borders.
d. No. Every country in the world has their own equivalent of the DOJ, and approval must be sought country by country, even if the U.S. based companies do not operate within some countries.