Question 1

Who benefits the most from the acquisition premium valued during an acquisition?

Accepted Answer

A)  The shareholders of the acquiring firm 
B)  The shareholders of the target firm 
C)  Neither benefit much 
D)  Both benefit the same 
A)  The shareholders of the acquiring firm 
B)  The shareholders of the target firm 
C)  Neither benefit much 
D)  Both benefit the same B

Question 2

Pay level is a common challenge in acquisitions. On average, Nomura employees received ____ their Lehman counterparts.

Accepted Answer

A)  Half the pay of 
B)  Double the pay of 
C)  The same pay as 
D)  None of the above 
A)  Half the pay of 
B)  Double the pay of 
C)  The same pay as 
D)  None of the above A

Question 3

A(n) ____ is an investment in real operations as opposed to financial capital.

Accepted Answer

A)  Acquisition 
B)  Merger 
C)  Real option 
D)  Foreign direct investment 
A)  Acquisition 
B)  Merger 
C)  Real option 
D)  Foreign direct investment C

Question 4

Overall, alliances have emerged as great instruments of real options because of their flexibility to sequentially scale up or scale down the investment.

Accepted Answer

A) True 
 B)False

Question 5

____ refers to a manager s overconfidence in his or her abilities.

Accepted Answer

A)  Hubris 
B)  Relational capability 
C)  Strategic fit 
D)  Learning by doing 
A)  Hubris 
B)  Relational capability 
C)  Strategic fit 
D)  Learning by doing

Question 6

Around 70% of acquisitions reportedly fail.

Accepted Answer

A) True 
 B)False

Question 7

Organizational fit is slightly less important than strategic fit.

Accepted Answer

A) True 
 B)False

Question 8

Why are M As and alliances often undertaken in isolation?

Accepted Answer

A)  Firms combined mergers, acquisitions, and alliance departments are often poorly managed 
B)  M As let a firm stay focused on its own needs while alliances require a great deal of investment in the other company. 
C)  In many firms, an M A group reports to CFO while a separate unit deals with alliances. 
D)  An alliance usually satisfies shareholders of both organizations, precluding an acquisition 
A)  Firms combined mergers, acquisitions, and alliance departments are often poorly managed 
B)  M As let a firm stay focused on its own needs while alliances require a great deal of investment in the other company. 
C)  In many firms, an M A group reports to CFO while a separate unit deals with alliances. 
D)  An alliance usually satisfies shareholders of both organizations, precluding an acquisition

Question 9

Strategic investments in an equity-based alliance involve one partner investing in another, while cross-shareholding involves both partners investing in each other.

Accepted Answer

A) True 
 B)False

Question 10

Equity alliance relationships tend to have less direct control over joint activities on a continual basis than the contractual relationships.

Accepted Answer

A) True 
 B)False

Question 11

A(n) ____ is a voluntary agreement of cooperation between firms.

Accepted Answer

A)  Equity-based alliance 
B)  Strategic alliance 
C)  Merger 
D)  Acquisition 
A)  Equity-based alliance 
B)  Strategic alliance 
C)  Merger 
D)  Acquisition

Question 12

Which of the following is NOT one of the three drivers behind acquisitions?

Accepted Answer

A)  Synergistic 
B)  Strategic fit 
C)  Managerial motives 
D)  Hubristic 
A)  Synergistic 
B)  Strategic fit 
C)  Managerial motives 
D)  Hubristic

Question 13

Discuss the performance of acquisitions and if shareholders benefit.

Accepted Answer

The overall performance record for acqui

Question 14

Which of the following is NOT one of the three broad categories in value creation in an alliance?

Accepted Answer

A)  Possibilities to use alliances as real options 
B)  Controlling the direction of the firm s investments 
C)  Reducing costs, risks, and uncertainties 
D)  Accessing complementary assets and learning opportunities 
A)  Possibilities to use alliances as real options 
B)  Controlling the direction of the firm s investments 
C)  Reducing costs, risks, and uncertainties 
D)  Accessing complementary assets and learning opportunities

Question 15

What is the best strategy for finding success with mergers and alliances, using an institution-based view?

Accepted Answer

A)  Managers need to understand the rules of the game, including both legal regulation and the market environment. 
B)  Managers need to pay attention to firms relational capabilities that often make or break relationships. 
C)  Managers need to maintain a strong organizational structure. 
D)  Managers should see the target in terms of value and not pay too high a premium. 
A)  Managers need to understand the rules of the game, including both legal regulation and the market environment. 
B)  Managers need to pay attention to firms relational capabilities that often make or break relationships. 
C)  Managers need to maintain a strong organizational structure. 
D)  Managers should see the target in terms of value and not pay too high a premium.

Question 16

Which of the following is NOT one of the stages in the formation of alliances?

Accepted Answer

A)  The decision to cooperate or not to cooperate 
B)  Deciding between contract or equity 
C)  Learning by doing 
D)  Specifying the relationship 
A)  The decision to cooperate or not to cooperate 
B)  Deciding between contract or equity 
C)  Learning by doing 
D)  Specifying the relationship

Question 17

Regarding motives for acquisitions, synergistic motives add value while hubris and managerial motives reduce value.

Accepted Answer

A) True 
 B)False

Question 18

Engaging in thorough due diligence concerning both strategic and organizational fit is a wise strategy during the post-acquisition phase.

Accepted Answer

A) True 
 B)False

Question 19

Since integration within alliances is usually not as tight as acquisitions, antitrust authorities have a higher likelihood of approving alliances.

Accepted Answer

A) True 
 B)False

Question 20

Limitability between alliance partners has much more to do with integration, and limitability between acquisition members has to do with trust.

Accepted Answer

A) True 
 B)False

Who benefits the most from the acquisition premium valued during an acquisition?

Pay level is a common challenge in acquisitions. On average, Nomura employees received ____ their Lehman counterparts.

A(n) ____ is an investment in real operations as opposed to financial capital.

Overall, alliances have emerged as great instruments of real options because of their flexibility to sequentially scale up or scale down the investment.

____ refers to a manager s overconfidence in his or her abilities.

Around 70% of acquisitions reportedly fail.

Organizational fit is slightly less important than strategic fit.

Why are M As and alliances often undertaken in isolation?

Strategic investments in an equity-based alliance involve one partner investing in another, while cross-shareholding involves both partners investing in each other.

Equity alliance relationships tend to have less direct control over joint activities on a continual basis than the contractual relationships.

A(n) ____ is a voluntary agreement of cooperation between firms.

Which of the following is NOT one of the three drivers behind acquisitions?

Discuss the performance of acquisitions and if shareholders benefit.

Which of the following is NOT one of the three broad categories in value creation in an alliance?

What is the best strategy for finding success with mergers and alliances, using an institution-based view?

Which of the following is NOT one of the stages in the formation of alliances?

Regarding motives for acquisitions, synergistic motives add value while hubris and managerial motives reduce value.

Engaging in thorough due diligence concerning both strategic and organizational fit is a wise strategy during the post-acquisition phase.

Since integration within alliances is usually not as tight as acquisitions, antitrust authorities have a higher likelihood of approving alliances.

Limitability between alliance partners has much more to do with integration, and limitability between acquisition members has to do with trust.

Globalizing Business

Understanding Formal Institutions: Politics, Laws, and Economics

Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Making Alliances and Acquisitions Work

Strategizing, Structuring, and Learning Around the World

Competing on Marketing and Supply Chain Management

Filters

Exam 11: Managing Global Competitive Dynamics

Who benefits the most from the acquisition premium valued during an acquisition?

Pay level is a common challenge in acquisitions. On average, Nomura employees received ____ their Lehman counterparts.

A(n) ____ is an investment in real operations as opposed to financial capital.

Overall, alliances have emerged as great instruments of real options because of their flexibility to sequentially scale up or scale down the investment.

____ refers to a manager s overconfidence in his or her abilities.

Around 70% of acquisitions reportedly fail.

Organizational fit is slightly less important than strategic fit.

Why are M As and alliances often undertaken in isolation?

Strategic investments in an equity-based alliance involve one partner investing in another, while cross-shareholding involves both partners investing in each other.

Equity alliance relationships tend to have less direct control over joint activities on a continual basis than the contractual relationships.

A(n) ____ is a voluntary agreement of cooperation between firms.

Which of the following is NOT one of the three drivers behind acquisitions?

Discuss the performance of acquisitions and if shareholders benefit.

Which of the following is NOT one of the three broad categories in value creation in an alliance?

What is the best strategy for finding success with mergers and alliances, using an institution-based view?

Which of the following is NOT one of the stages in the formation of alliances?

Regarding motives for acquisitions, synergistic motives add value while hubris and managerial motives reduce value.

Engaging in thorough due diligence concerning both strategic and organizational fit is a wise strategy during the post-acquisition phase.

Since integration within alliances is usually not as tight as acquisitions, antitrust authorities have a higher likelihood of approving alliances.

Limitability between alliance partners has much more to do with integration, and limitability between acquisition members has to do with trust.

Globalizing Business

Understanding Formal Institutions: Politics, Laws, and Economics

Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Making Alliances and Acquisitions Work

Strategizing, Structuring, and Learning Around the World

Competing on Marketing and Supply Chain Management

Filters