Question 1

Most of the motives behind mergers and acquisitions reflect shareholders' best interests.

Accepted Answer

A) True 
 B)False

Question 2

Before executing an international acquisition, companies need to examine the issues of differing competitors, laws, and ________.

Accepted Answer

A)  strategies 
B)  products 
C)  cultures 
D)  technologies 
A)  strategies 
B)  products 
C)  cultures 
D)  technologies

Question 3

Firms have synergy when they can control prices.

Accepted Answer

A) True 
 B)False

Question 4

Organizational conflict may emerge as a potential problem in the integration of two firms as a result of ________.

Accepted Answer

A)  managerial self-interest 
B)  cultural clashes 
C)  hubris 
D)  all of the above 
A)  managerial self-interest 
B)  cultural clashes 
C)  hubris 
D)  all of the above

Question 5

Decision-making problems may arise during which of the following stages?

Accepted Answer

A)  idea generation 
B)  justification 
C)  integration 
D)  all of the above 
A)  idea generation 
B)  justification 
C)  integration 
D)  all of the above

Question 6

Explain the five factors that can affect the attractiveness of acquisitions as strategy vehicles.

Accepted Answer

Many factors can affect the attractivene

Question 7

The terms mergers and acquisitions are synonymous and may be used interchangeably

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Vertical acquisitions help fill out the company's product offerings.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are stages in an acquisition except ________.

Accepted Answer

A)  rationalization 
B)  idea generation 
C)  justification 
D)  integration 
A)  rationalization 
B)  idea generation 
C)  justification 
D)  integration

Question 11

_____ entail(s) incremental investment over time.

Accepted Answer

A)  Mergers 
B)  Acquisitions 
C)  Internal development 
D)  Divestitures 
A)  Mergers 
B)  Acquisitions 
C)  Internal development 
D)  Divestitures

Question 12

The financial success of any acquisition has a significant effect on the overall economic logic of a firm's strategy.

Accepted Answer

A) True 
 B)False

Question 13

Some firms use acquisitions instead of internal research and development.

Accepted Answer

A) True 
 B)False

Question 14

Acquisitions enable companies to accelerate their strategies.

Accepted Answer

A) True 
 B)False

Question 15

According to data compiled from SDC Platinum in Exhibit 10.4, acquisition activity peaked closest to the year ________.

Accepted Answer

A)  1988 
B)  1993 
C)  1998 
D)  2003 
A)  1988 
B)  1993 
C)  1998 
D)  2003

Question 16

A complementary business is one that ________.

Accepted Answer

A)  has a non-compete agreement with another firm 
B)  makes another firm's product obsolete 
C)  competes with another firm's product 
D)  increases the sale of another product 
A)  has a non-compete agreement with another firm 
B)  makes another firm's product obsolete 
C)  competes with another firm's product 
D)  increases the sale of another product

Question 17

What is a merger?

Accepted Answer

A merger is the cons

Question 18

Improved efficiencies come from reducing redundant operations and ________.

Accepted Answer

A)  hiring a new level of middle managers 
B)  developing an increased number of production lines 
C)  integrating similar firms 
D)  trimming the size of combined units 
A)  hiring a new level of middle managers 
B)  developing an increased number of production lines 
C)  integrating similar firms 
D)  trimming the size of combined units

Question 19

When a firm uses acquisition as a strategy in lieu of R&D, it is usually trying to gain ownership of the other firm's ________.

Accepted Answer

A)  real estate 
B)  technology 
C)  proprietary secrets 
D)  trade agreements 
A)  real estate 
B)  technology 
C)  proprietary secrets 
D)  trade agreements

Question 20

Parties to an overcapacity are trying to ________ the industry.

Accepted Answer

A)  slow down 
B)  eliminate 
C)  consolidate 
D)  expand 
A)  slow down 
B)  eliminate 
C)  consolidate 
D)  expand

Most of the motives behind mergers and acquisitions reflect shareholders' best interests.

Before executing an international acquisition, companies need to examine the issues of differing competitors, laws, and ________.

Firms have synergy when they can control prices.

Organizational conflict may emerge as a potential problem in the integration of two firms as a result of ________.

Decision-making problems may arise during which of the following stages?

Explain the five factors that can affect the attractiveness of acquisitions as strategy vehicles.

The terms mergers and acquisitions are synonymous and may be used interchangeably

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

Vertical acquisitions help fill out the company's product offerings.

All of the following are stages in an acquisition except ________.

_____ entail(s) incremental investment over time.

The financial success of any acquisition has a significant effect on the overall economic logic of a firm's strategy.

Some firms use acquisitions instead of internal research and development.

Acquisitions enable companies to accelerate their strategies.

According to data compiled from SDC Platinum in Exhibit 10.4, acquisition activity peaked closest to the year ________.

A complementary business is one that ________.

What is a merger?

Improved efficiencies come from reducing redundant operations and ________.

When a firm uses acquisition as a strategy in lieu of R&D, it is usually trying to gain ownership of the other firm's ________.

Parties to an overcapacity are trying to ________ the industry.

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

Most of the motives behind mergers and acquisitions reflect shareholders' best interests.

Before executing an international acquisition, companies need to examine the issues of differing competitors, laws, and ________.

Firms have synergy when they can control prices.

Organizational conflict may emerge as a potential problem in the integration of two firms as a result of ________.

Decision-making problems may arise during which of the following stages?

Explain the five factors that can affect the attractiveness of acquisitions as strategy vehicles.

The terms mergers and acquisitions are synonymous and may be used interchangeably

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

Vertical acquisitions help fill out the company's product offerings.

All of the following are stages in an acquisition except ________.

_____ entail(s) incremental investment over time.

The financial success of any acquisition has a significant effect on the overall economic logic of a firm's strategy.

Some firms use acquisitions instead of internal research and development.

Acquisitions enable companies to accelerate their strategies.

According to data compiled from SDC Platinum in Exhibit 10.4, acquisition activity peaked closest to the year ________.

A complementary business is one that ________.

What is a merger?

Improved efficiencies come from reducing redundant operations and ________.

When a firm uses acquisition as a strategy in lieu of R&D, it is usually trying to gain ownership of the other firm's ________.

Parties to an overcapacity are trying to ________ the industry.

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