Exam 10: Studying Merges and Acquisitions

Acquisitions enable firms to ________.

In most cases of overcapacity mergers, both companies are usually already large enough to be operating at a minimum efficient scale.

The greater the cost in capital and time, the more synergies managers need to create from the acquisition.

An international acquisition can be any of the following types except ________.

Through a merger or acquisition, firms may be able to create a bundle of resources that is unavailable to competitors.

The amount received by the target firm's shareholders in excess of the value of their stock during a merger or acquisition is called ________.

Markets make important adjustments in the valuation of a firm by doing all of the following except ________.

Cost savings are the most common synergy.

A geographic roll-up occurs when a firm acquires firms that are in the same industry segment but in many different geographic arenas.

When mergers and acquisitions are undertaken in pursuit of synergy which of the following relationships describes the beliefs that guide managers. Let A and B represent the firms involved.

The strategy by which one firm acquires another through stock exchange is called a(n) ________.

Executives decrease their commitment to an initiative as they proceed through a transaction.

What are questions that managers should ask before going through with an acquisition?

Synergy may derive from all of the following sources except ________.

Acquiring firms is more likely to realize synergies when managerialism and hubris are kept in check.

All of the following are critical decisions that need to be made during the justification stage except ________.

When integrating acquisitions, most managers tend to focus on personnel issues.

In a ________ acquisition, one company buys another that offers essentially the same products as the buyer but that has a presence in a geographic market in which the buyer has no presence.

Business-strategy alliances are fundamentally related to a firm's core business through ________.

_____ is a major factor in making mergers and acquisitions work.