Question 1

Name the three purposes of vertical acquisition.

Accepted Answer

A vertical acquisition has three purpose

Question 2

The amount of merger and acquisition activity is determined largely by the industry development phase.

Accepted Answer

A) True 
 B)False

Question 3

_____ is/are typically an all-or-nothing proposition as opposed to incremental investment over time.

Accepted Answer

A)  Internal development 
B)  Acquisitions 
C)  Sole-sourcing 
D)  Roll-ups 
A)  Internal development 
B)  Acquisitions 
C)  Sole-sourcing 
D)  Roll-ups

Question 4

What are the three typical categories of motives behind most mergers and acquisitions?

Accepted Answer

The motives behind mergers and

Question 5

When a firm develops a capability rather than acquires it, the firm is using the vehicle of ________.

Accepted Answer

A)  external development 
B)  internal development 
C)  alliance 
D)  acquisition 
A)  external development 
B)  internal development 
C)  alliance 
D)  acquisition

Question 6

What is the basic difference between mergers and acquisitions?

Accepted Answer

Mergers are the consolidation

Question 7

A class of mergers between firms of similar size and influence are referred to as ________.

Accepted Answer

A)  equal alliances 
B)  mergers of equals 
C)  synergistic mergers 
D)  mergers of convenience 
A)  equal alliances 
B)  mergers of equals 
C)  synergistic mergers 
D)  mergers of convenience

Question 8

What are the differences between product- and market-expansion acquisitions?

Accepted Answer

In a product-extension acquisition, the

Question 9

Technological integration is critical in most acquisitions because of the time value of money.

Accepted Answer

A) True 
 B)False

Question 10

When using mergers and acquisitions as substitutes for research and development, the objectives include ________.

Accepted Answer

A)  short-cut innovation by buying it from small companies 
B)  synergy of similar but expanded product lines or geographic markets 
C)  eliminating capacity, gaining market share, and increasing efficiency 
D)  anticipation of new industry emerging and culling resources from firms in multiple industries whose boundaries are eroding 
A)  short-cut innovation by buying it from small companies 
B)  synergy of similar but expanded product lines or geographic markets 
C)  eliminating capacity, gaining market share, and increasing efficiency 
D)  anticipation of new industry emerging and culling resources from firms in multiple industries whose boundaries are eroding

Question 11

Which of the following is not one of the factors that can affect the attractiveness of acquisitions as strategy vehicles?

Accepted Answer

A)  technological change 
B)  demographic change 
C)  trade liberalization 
D)  geographical change 
A)  technological change 
B)  demographic change 
C)  trade liberalization 
D)  geographical change

Question 12

Managers often have unsound confidence in both their valuations of acquisitions and in their ability to create value.

Accepted Answer

A) True 
 B)False

Question 13

Firms often decide against entering new businesses because they are not likely to generate sufficient return on capital to justify the ________.

Accepted Answer

A)  upheaval 
B)  premium cost 
C)  resource allocation 
D)  human resources changes 
A)  upheaval 
B)  premium cost 
C)  resource allocation 
D)  human resources changes

Name the three purposes of vertical acquisition.

The amount of merger and acquisition activity is determined largely by the industry development phase.

_____ is/are typically an all-or-nothing proposition as opposed to incremental investment over time.

What are the three typical categories of motives behind most mergers and acquisitions?

When a firm develops a capability rather than acquires it, the firm is using the vehicle of ________.

What is the basic difference between mergers and acquisitions?

A class of mergers between firms of similar size and influence are referred to as ________.

What are the differences between product- and market-expansion acquisitions?

Technological integration is critical in most acquisitions because of the time value of money.

When using mergers and acquisitions as substitutes for research and development, the objectives include ________.

Which of the following is not one of the factors that can affect the attractiveness of acquisitions as strategy vehicles?

Managers often have unsound confidence in both their valuations of acquisitions and in their ability to create value.

Firms often decide against entering new businesses because they are not likely to generate sufficient return on capital to justify the ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

Exam 10: Studying Merges and Acquisitions

Name the three purposes of vertical acquisition.

The amount of merger and acquisition activity is determined largely by the industry development phase.

_____ is/are typically an all-or-nothing proposition as opposed to incremental investment over time.

What are the three typical categories of motives behind most mergers and acquisitions?

When a firm develops a capability rather than acquires it, the firm is using the vehicle of ________.

What is the basic difference between mergers and acquisitions?

A class of mergers between firms of similar size and influence are referred to as ________.

What are the differences between product- and market-expansion acquisitions?

Technological integration is critical in most acquisitions because of the time value of money.

When using mergers and acquisitions as substitutes for research and development, the objectives include ________.

Which of the following is not one of the factors that can affect the attractiveness of acquisitions as strategy vehicles?

Managers often have unsound confidence in both their valuations of acquisitions and in their ability to create value.

Firms often decide against entering new businesses because they are not likely to generate sufficient return on capital to justify the ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters