Exam 6: Corporate-Level Strategy: Creating Value Through Diversification

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________ is when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant,positive change,thereby creating value within business units.

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C

One of the reasons it is said that only the investment banker wins when a company is acquired is that they

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C

The Marriott International purchase of Starwood Hotels for 13.6 billion USD is an example of a(n)

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A

Microsoft offered in 2016 to buy LinkedIn for 26.2 billion USD which was 50 percent higher than the value for LinkedIn the day before.This high premium offer was necessary for Microsoft to complete ________ initiative.

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When a firm diversifies into ________ businesses,the primary potential benefits to be derived come from ________ relationships-those businesses that share intangible and tangible resources.

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________ is an antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price.

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________ is when one firm buys another through a stock purchase,cash or the issuance of debt.

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Greenmail is an offer by a company,threatened by takeover,to offer its stock at a reduced price to a third party.

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If a multinational firm paid too high a premium for the common stock of the company,this can lead to

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The potential advantages of strategic alliances and joint ventures include entering new markets as well as developing and diffusing new technologies.

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According to BNP Paribas chief economist,Julia Coronado,when businesses feel confident about the future they are more aggressive in looking for ways to grow and expand their operations.You would expect the volume of mergers and acquisitions to ________ during this period.

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A golden parachute is a prearranged contract with managers specifying that,in the event of a hostile takeover,the target company managers will be paid a significant severance package.

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Portfolio management frameworks,such as the BCG matrix,share which of the following characteristics?

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Vertical integration is more likely to be attractive when the end consumer market is

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Portfolio management should be considered as the primary basis for formulating corporate-level strategies.

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If a multinational firm fails to effectively integrate their acquisitions,this can result in

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Diversification initiatives include all the following except

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________ is when a new legal entity is formed by a combination or consolidation of two firms.

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Restructuring requires the corporate office to find either exceptionally performing firms with realized potential or firms in industries on the threshold of significant,negative change.

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Which of the following is not a way a corporation tries to create shareholder value in using portfolio strategy approaches?

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