Question 1

The objective of preservation acquisition is to preserve the green credentials of the acquired organisation.

Accepted Answer

A) True 
 B)False

Question 2

Explain the differences between absorption and preservation acquisitions.

Accepted Answer

The aim of absorption acquisitions is to

Question 3

According to Hubbard,Rice and Galvin,an alliance is a cooperative and positively competitive relationship between organisations.

Accepted Answer

A) True 
 B)False

Question 4

Hubbard,Rice and Galvin define a merger as:

Accepted Answer

A) a mutually agreed consolidation under joint ownership of two independent entities 
B) an exchange of shares between two related parties 
C) the purchase of 66% of shares to obtain decision-making control over another organisation 
D) an activity engaged in to stimulate stock market waves 
A) a mutually agreed consolidation under joint ownership of two independent entities 
B) an exchange of shares between two related parties 
C) the purchase of 66% of shares to obtain decision-making control over another organisation 
D) an activity engaged in to stimulate stock market waves

Question 5

Hubbard,Rice and Galvin present that the joint venture will be arguably most effective when:

Accepted Answer

A) each parent has equal influence over both the strategic and day-to-day operations of the venture 
B) none of the parent firms has influence over both the strategic and day-to-day operations of the venture 
C) one parent has a lot of influence over both the strategic and day-to-day operations of the venture 
D) none of the above 
A) each parent has equal influence over both the strategic and day-to-day operations of the venture 
B) none of the parent firms has influence over both the strategic and day-to-day operations of the venture 
C) one parent has a lot of influence over both the strategic and day-to-day operations of the venture 
D) none of the above

Question 6

Anslinger and Copeland's study of leveraged buyouts and diversified corporations showed that:

Accepted Answer

A) they were classified as unrelated from a resource-based perspective 
B) they produced high share market returns from strategies of making acquisitions 
C) they were classified as related from a product-market perspective 
D) they produced low share market returns from strategies of making acquisitions 
A) they were classified as unrelated from a resource-based perspective 
B) they produced high share market returns from strategies of making acquisitions 
C) they were classified as related from a product-market perspective 
D) they produced low share market returns from strategies of making acquisitions

Question 7

Explain what causes acquisitions to occur in waves and give examples.

Accepted Answer

Acquisitions occur in waves,which appear

Question 8

Acquirers of publicly listed companies usually have to pay a premium in order to entice current shareholders.

Accepted Answer

A) True 
 B)False

Question 9

Leveraged buyout is a(n)___ of an organisation using a large percentage of debt to fund the ___.

Accepted Answer

A) merger,acquisition 
B) acquisition,acquisition 
C) acquisition,merger 
D) merger,merger 
A) merger,acquisition 
B) acquisition,acquisition 
C) acquisition,merger 
D) merger,merger

Question 10

Consider the distinct steps of the acquisition process and explain if all steps are equally important.

Accepted Answer

In a rational acquisition process,the fo

Question 11

The 'trust' between partners is largely determined by:

Accepted Answer

A) financial power of partners 
B) duration of relationship 
C) dominance of one partner over others 
D) market share of partners 
A) financial power of partners 
B) duration of relationship 
C) dominance of one partner over others 
D) market share of partners

Question 12

In testing the strategic logic for a joint venture,which of the following questions is NOT considered by the company?

Accepted Answer

A) Does it need a partner and for how long? 
B) How big is the payoff for both parties? 
C) Does the partner have necessary skills and resources? 
D) Is a joint venture the best option? 
A) Does it need a partner and for how long? 
B) How big is the payoff for both parties? 
C) Does the partner have necessary skills and resources? 
D) Is a joint venture the best option?

Question 13

The first step of the rational acquisition process is 'conducting due diligence' of the target organisation.

Accepted Answer

A) True 
 B)False

Question 14

Hubbard,Rice and Galvin define an acquisition as:

Accepted Answer

A) the sale of 50.1% of shares by an organisation on floatation 
B) a mutually agreed consolidation under joint ownership of two organisations 
C) the purchase of enough shares to obtain decision-making control over an organisation 
D) majority ownership by 51% of directors 
A) the sale of 50.1% of shares by an organisation on floatation 
B) a mutually agreed consolidation under joint ownership of two organisations 
C) the purchase of enough shares to obtain decision-making control over an organisation 
D) majority ownership by 51% of directors

Question 15

Ownership of 51% of shares gives same level of control as 100% ownership.

Accepted Answer

A) True 
 B)False

Question 16

Success of merger and acquisition is determined by the quality of strategic analysis,search and valuation.

Accepted Answer

A) True 
 B)False

Question 17

Joint venture is NOT formed to:

Accepted Answer

A) gain benefits over other partners 
B) allow a firm to achieve economies of scale 
C) allow a firm to access to resources 
D) provide a firm with joint research and development opportunities 
A) gain benefits over other partners 
B) allow a firm to achieve economies of scale 
C) allow a firm to access to resources 
D) provide a firm with joint research and development opportunities

Question 18

Explain some of the characteristics researchers found were associated with successful acquisitions.

Accepted Answer

Hitt et al.found that acquisitions that

Question 19

Experienced managers argue that it is the ___ between the partners that binds them together:

Accepted Answer

A) legal agreement 
B) relationship 
C) financial interest 
D) power structure 
A) legal agreement 
B) relationship 
C) financial interest 
D) power structure

Question 20

In 'absorption acquisitions',the acquirer needs to ensure that ___ at the target switch ___ and ___ as quickly as possible:

Accepted Answer

A) employees,affiliation to,identify with the goals of objectives of the acquirer 
B) management,loyalty,bonus schemes 
C) plant and machinery,to preferred gas,electricity suppliers 
D) shareholders,dividend preference,reinvest their distributions 
A) employees,affiliation to,identify with the goals of objectives of the acquirer 
B) management,loyalty,bonus schemes 
C) plant and machinery,to preferred gas,electricity suppliers 
D) shareholders,dividend preference,reinvest their distributions

The objective of preservation acquisition is to preserve the green credentials of the acquired organisation.

Explain the differences between absorption and preservation acquisitions.

According to Hubbard,Rice and Galvin,an alliance is a cooperative and positively competitive relationship between organisations.

Hubbard,Rice and Galvin define a merger as:

Hubbard,Rice and Galvin present that the joint venture will be arguably most effective when:

Anslinger and Copeland's study of leveraged buyouts and diversified corporations showed that:

Explain what causes acquisitions to occur in waves and give examples.

Acquirers of publicly listed companies usually have to pay a premium in order to entice current shareholders.

Leveraged buyout is a(n)_ of an organisation using a large percentage of debt to fund the _.

Consider the distinct steps of the acquisition process and explain if all steps are equally important.

The 'trust' between partners is largely determined by:

In testing the strategic logic for a joint venture,which of the following questions is NOT considered by the company?

The first step of the rational acquisition process is 'conducting due diligence' of the target organisation.

Hubbard,Rice and Galvin define an acquisition as:

Ownership of 51% of shares gives same level of control as 100% ownership.

Success of merger and acquisition is determined by the quality of strategic analysis,search and valuation.

Joint venture is NOT formed to:

Explain some of the characteristics researchers found were associated with successful acquisitions.

Experienced managers argue that it is the ___ between the partners that binds them together:

In 'absorption acquisitions',the acquirer needs to ensure that _ at the target switch _ and ___ as quickly as possible:

What Is Strategy

Analysing Business Strategy: Creating Value

Analysing the External Environment

Analysing the External Environment

Measuring Strategic Organisation Performance

GAP Analysis and Business-Level Strategic Options

Strategic Decision-Making

Dynamic Competitive Strategy

Corporatemulti-Business Strategy

International Strategy

Capabilities, Systems and Structure

Leadership, People and Culture

Change Management

Filters

Exam 10: Acquisitions and Alliances

The objective of preservation acquisition is to preserve the green credentials of the acquired organisation.

Explain the differences between absorption and preservation acquisitions.

According to Hubbard,Rice and Galvin,an alliance is a cooperative and positively competitive relationship between organisations.

Hubbard,Rice and Galvin define a merger as:

Hubbard,Rice and Galvin present that the joint venture will be arguably most effective when:

Anslinger and Copeland's study of leveraged buyouts and diversified corporations showed that:

Explain what causes acquisitions to occur in waves and give examples.

Acquirers of publicly listed companies usually have to pay a premium in order to entice current shareholders.

Leveraged buyout is a(n)___ of an organisation using a large percentage of debt to fund the ___.

Consider the distinct steps of the acquisition process and explain if all steps are equally important.

The 'trust' between partners is largely determined by:

In testing the strategic logic for a joint venture,which of the following questions is NOT considered by the company?

The first step of the rational acquisition process is 'conducting due diligence' of the target organisation.

Hubbard,Rice and Galvin define an acquisition as:

Ownership of 51% of shares gives same level of control as 100% ownership.

Success of merger and acquisition is determined by the quality of strategic analysis,search and valuation.

Joint venture is NOT formed to:

Explain some of the characteristics researchers found were associated with successful acquisitions.

Experienced managers argue that it is the ___ between the partners that binds them together:

In 'absorption acquisitions',the acquirer needs to ensure that ___ at the target switch ___ and ___ as quickly as possible:

What Is Strategy

Analysing Business Strategy: Creating Value

Analysing the External Environment

Analysing the External Environment

Measuring Strategic Organisation Performance

GAP Analysis and Business-Level Strategic Options

Strategic Decision-Making

Dynamic Competitive Strategy

Corporatemulti-Business Strategy

International Strategy

Capabilities, Systems and Structure

Leadership, People and Culture

Change Management

Filters

Leveraged buyout is a(n)_ of an organisation using a large percentage of debt to fund the _.

In 'absorption acquisitions',the acquirer needs to ensure that _ at the target switch _ and ___ as quickly as possible: