Question 1

Due diligence is a process through which a potential acquirer evaluates a target firm for acquisition

Accepted Answer

A) True 
 B)False

Question 2

When XM and SIRIUS,two satellite radio businesses in Canada,merged,the impact was negligible on the bottom line for XM.

Accepted Answer

A) True 
 B)False

Question 3

What was one of the key factors that resulted in the successful merger of Rogers Communications Inc.with Fido?

Accepted Answer

A) Rogers ensured no job losses. 
B) Rogers set up an intranet site. 
C) Rogers paid a premium for Fido. 
D) Rogers monitored the merger's progress. 
A) Rogers ensured no job losses. 
B) Rogers set up an intranet site. 
C) Rogers paid a premium for Fido. 
D) Rogers monitored the merger's progress.

Question 4

According to researcher F.R.David (Strategic Management: Concepts and Cases,12th edition,2009,page 169)what are five of the main reasons for the failure of mergers and acquisitions?

Accepted Answer

∙ integration difficulties
∙ inadequate

Question 5

Worker stress levels during M&As may necessitate clearer policies,procedures,and compliance.

Accepted Answer

A) True 
 B)False

Question 6

What are three motives for a company to decide to merge?

Accepted Answer

A) financial benefits,management needs,and increased resources 
B) strategic benefits,management needs,and increased resources 
C) strategic benefits,financial benefits,and management needs 
D) CEO desires,cost savings,and resource benefits 
A) financial benefits,management needs,and increased resources 
B) strategic benefits,management needs,and increased resources 
C) strategic benefits,financial benefits,and management needs 
D) CEO desires,cost savings,and resource benefits

Question 7

Demotion refers to a reduction of responsibility,territory,or lines of authority for an employee.

Accepted Answer

A) True 
 B)False

Question 8

Merging two organizational cultures is challenging.What is it called when the partner companies abandon key elements of their current cultures and adopt new norms?

Accepted Answer

A) cultural pluralism 
B) cultural transformation 
C) cultural integration 
D) cultural assimilation 
A) cultural pluralism 
B) cultural transformation 
C) cultural integration 
D) cultural assimilation

Question 9

Mergers succeed or fail for what reasons?

Accepted Answer

A) human 
B) strategic 
C) financial 
D) operational 
A) human 
B) strategic 
C) financial 
D) operational

Question 10

According to your textbook,what percentage of all mergers fail due to the mismanagement of culture?

Accepted Answer

A) 25 percent 
B) 45 percent 
C) 65 percent 
D) 85 percent 
A) 25 percent 
B) 45 percent 
C) 65 percent 
D) 85 percent

Question 11

Integration difficulties is one of the reasons for M&A failures.

Accepted Answer

A) True 
 B)False

Question 12

Culture refers to the set of important beliefs that members of an organization share.

Accepted Answer

A) True 
 B)False

Question 13

HR planning in a merger and acquisitions situation has several dimensions that are NOT part of the normal planning process.Describe three HR planning activities that are not part of the normal HR planning process and that an organization would want to include in the merger and acquisition process.

Accepted Answer

∙ transition team im

Question 14

According to researchers,four options are open to those involved in merging cultures.Which of the following is NOT an option?

Accepted Answer

A) cultural pluralism 
B) cultural inspiration 
C) cultural assimilation 
D) cultural transformation 
A) cultural pluralism 
B) cultural inspiration 
C) cultural assimilation 
D) cultural transformation

Question 15

What is the growth strategy that results in the fastest growth for an organization?

Accepted Answer

A) leveraging current customers 
B) opening new markets internationally 
C) corporate joint ventures 
D) mergers and acquisitions 
A) leveraging current customers 
B) opening new markets internationally 
C) corporate joint ventures 
D) mergers and acquisitions

Question 16

According to your textbook,what percentage of firms fail to produce any shareholder value following a merger?

Accepted Answer

A) 20 percent 
B) 40 percent 
C) 60 percent 
D) 80 percent 
A) 20 percent 
B) 40 percent 
C) 60 percent 
D) 80 percent

Question 17

Individuals who survive a merger often experience stress,anxiety,and loss of productivity.

Accepted Answer

A) True 
 B)False

Question 18

If two competing companies merged to increase market power,what type of merger would result?

Accepted Answer

A) acquisition 
B) horizontal 
C) conglomerate 
D) vertical 
A) acquisition 
B) horizontal 
C) conglomerate 
D) vertical

Question 19

Who are the two parties involved in a horizontal merger?

Accepted Answer

A) buyer and supplier 
B) two competitors 
C) management and employees 
D) shareholders and executives 
A) buyer and supplier 
B) two competitors 
C) management and employees 
D) shareholders and executives

Question 20

When two companies merge,one possible result is the creation of a new compensation system.

Accepted Answer

A) True 
 B)False

Due diligence is a process through which a potential acquirer evaluates a target firm for acquisition

When XM and SIRIUS,two satellite radio businesses in Canada,merged,the impact was negligible on the bottom line for XM.

What was one of the key factors that resulted in the successful merger of Rogers Communications Inc.with Fido?

According to researcher F.R.David (Strategic Management: Concepts and Cases,12th edition,2009,page 169)what are five of the main reasons for the failure of mergers and acquisitions?

Worker stress levels during M&As may necessitate clearer policies,procedures,and compliance.

What are three motives for a company to decide to merge?

Demotion refers to a reduction of responsibility,territory,or lines of authority for an employee.

Merging two organizational cultures is challenging.What is it called when the partner companies abandon key elements of their current cultures and adopt new norms?

Mergers succeed or fail for what reasons?

According to your textbook,what percentage of all mergers fail due to the mismanagement of culture?

Integration difficulties is one of the reasons for M&A failures.

Culture refers to the set of important beliefs that members of an organization share.

HR planning in a merger and acquisitions situation has several dimensions that are NOT part of the normal planning process.Describe three HR planning activities that are not part of the normal HR planning process and that an organization would want to include in the merger and acquisition process.

According to researchers,four options are open to those involved in merging cultures.Which of the following is NOT an option?

What is the growth strategy that results in the fastest growth for an organization?

According to your textbook,what percentage of firms fail to produce any shareholder value following a merger?

Individuals who survive a merger often experience stress,anxiety,and loss of productivity.

If two competing companies merged to increase market power,what type of merger would result?

Who are the two parties involved in a horizontal merger?

When two companies merge,one possible result is the creation of a new compensation system.

Strategic Management

Aligning HR With Strategy

Environmental Influences on HRM

The HR Forecasting Process

Determining HR Demand

Ascertaining HR Supply

Succession Management

Information Technology for HR Planning

Change Management

Downsizing and Restructuring

Strategic International HRM

Outsourcing

HR Assessment and Analytics

Filters

Exam 12: Mergers and Acquisitions

Due diligence is a process through which a potential acquirer evaluates a target firm for acquisition

When XM and SIRIUS,two satellite radio businesses in Canada,merged,the impact was negligible on the bottom line for XM.

What was one of the key factors that resulted in the successful merger of Rogers Communications Inc.with Fido?

According to researcher F.R.David (Strategic Management: Concepts and Cases,12th edition,2009,page 169)what are five of the main reasons for the failure of mergers and acquisitions?

Worker stress levels during M&As may necessitate clearer policies,procedures,and compliance.

What are three motives for a company to decide to merge?

Demotion refers to a reduction of responsibility,territory,or lines of authority for an employee.

Merging two organizational cultures is challenging.What is it called when the partner companies abandon key elements of their current cultures and adopt new norms?

Mergers succeed or fail for what reasons?

According to your textbook,what percentage of all mergers fail due to the mismanagement of culture?

Integration difficulties is one of the reasons for M&A failures.

Culture refers to the set of important beliefs that members of an organization share.

HR planning in a merger and acquisitions situation has several dimensions that are NOT part of the normal planning process.Describe three HR planning activities that are not part of the normal HR planning process and that an organization would want to include in the merger and acquisition process.

According to researchers,four options are open to those involved in merging cultures.Which of the following is NOT an option?

What is the growth strategy that results in the fastest growth for an organization?

According to your textbook,what percentage of firms fail to produce any shareholder value following a merger?

Individuals who survive a merger often experience stress,anxiety,and loss of productivity.

If two competing companies merged to increase market power,what type of merger would result?

Who are the two parties involved in a horizontal merger?

When two companies merge,one possible result is the creation of a new compensation system.

Strategic Management

Aligning HR With Strategy

Environmental Influences on HRM

The HR Forecasting Process

Determining HR Demand

Ascertaining HR Supply

Succession Management

Information Technology for HR Planning

Change Management

Downsizing and Restructuring

Strategic International HRM

Outsourcing

HR Assessment and Analytics

Filters