Question 1

What are the critical decisions that must be made during the justification stage of acquisitions? Explain.

Accepted Answer

Several critical decisions must be made

Question 2

What are integration managers and what role do they play in mergers and acquisitions?

Accepted Answer

Many firms make the mistake of assuming

Question 3

Explain the three categories of typical motives behind mergers and acquisitions.

Accepted Answer

The motives behind M&As fall into three

Question 4

Revenue enhancement synergies are also sometimes referred to as ________.

Accepted Answer

A)  soft synergies 
B)  hard synergies 
C)  economic synergies 
D)  engineering synergies 
A)  soft synergies 
B)  hard synergies 
C)  economic synergies 
D)  engineering synergies

Question 5

In investor/holding company transactions, independent investors or holding companies purchase existing firms.

Accepted Answer

A) True 
 B)False

Question 6

Executive compensation tends to be linked to firm size.

Accepted Answer

A) True 
 B)False

Question 7

Name some of the possible sources of synergy.

Accepted Answer

Synergy may derive from the following so

Question 8

What is an acquisition premium and how does it relate to a firm's new situation?

Accepted Answer

An acquisition premium is the difference

Question 9

Serial acquirers are companies that engage in frequent acquisitions.

Accepted Answer

A) True 
 B)False

Question 10

Acquisitions are generally regarded as a means of managing competitive uncertainty.

Accepted Answer

A) True 
 B)False

Question 11

If a firm is pursuing a growth strategy, the coevolution perspective would suggest that it divest slow-growth businesses and products.

Accepted Answer

A) True 
 B)False

Question 12

The potentially conflicting needs of strategic interdependence and ________ can affect optimal organizational structure following a merger or acquisition.

Accepted Answer

A)  technological interdependence 
B)  organizational autonomy 
C)  industry convergence 
D)  organizational integration 
A)  technological interdependence 
B)  organizational autonomy 
C)  industry convergence 
D)  organizational integration

Question 13

What is the winner's curse?

Accepted Answer

The winner's curse is a situat

Question 14

Overcapacity mergers are often explained as attempts to create ________.

Accepted Answer

A)  economies of scale 
B)  additional resources 
C)  new markets 
D)  better working environments 
A)  economies of scale 
B)  additional resources 
C)  new markets 
D)  better working environments

Question 15

In industry convergence, 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 16

Sometimes senior managers make decisions based on personal, and not shareholder, interest.

Accepted Answer

A) True 
 B)False

Question 17

Synergy occurs when the value of two firms combined is greater than the sum of the values of the two firms independently.

Accepted Answer

A) True 
 B)False

Question 18

When two organizations have a lot in common, cultural differences are limited.

Accepted Answer

A) True 
 B)False

Question 19

eBay generates revenues only through charging listing and selling fees.

Accepted Answer

A) True 
 B)False

Question 20

Various tax benefits may provide unique financial synergies.

Accepted Answer

A) True 
 B)False

What are the critical decisions that must be made during the justification stage of acquisitions? Explain.

What are integration managers and what role do they play in mergers and acquisitions?

Explain the three categories of typical motives behind mergers and acquisitions.

Revenue enhancement synergies are also sometimes referred to as ________.

In investor/holding company transactions, independent investors or holding companies purchase existing firms.

Executive compensation tends to be linked to firm size.

Name some of the possible sources of synergy.

What is an acquisition premium and how does it relate to a firm's new situation?

Serial acquirers are companies that engage in frequent acquisitions.

Acquisitions are generally regarded as a means of managing competitive uncertainty.

If a firm is pursuing a growth strategy, the coevolution perspective would suggest that it divest slow-growth businesses and products.

The potentially conflicting needs of strategic interdependence and ________ can affect optimal organizational structure following a merger or acquisition.

What is the winner's curse?

Overcapacity mergers are often explained as attempts to create ________.

In industry convergence, the objectives include ________.

Sometimes senior managers make decisions based on personal, and not shareholder, interest.

Synergy occurs when the value of two firms combined is greater than the sum of the values of the two firms independently.

When two organizations have a lot in common, cultural differences are limited.

eBay generates revenues only through charging listing and selling fees.

Various tax benefits may provide unique financial synergies.

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

What are the critical decisions that must be made during the justification stage of acquisitions? Explain.

What are integration managers and what role do they play in mergers and acquisitions?

Explain the three categories of typical motives behind mergers and acquisitions.

Revenue enhancement synergies are also sometimes referred to as ________.

In investor/holding company transactions, independent investors or holding companies purchase existing firms.

Executive compensation tends to be linked to firm size.

Name some of the possible sources of synergy.

What is an acquisition premium and how does it relate to a firm's new situation?

Serial acquirers are companies that engage in frequent acquisitions.

Acquisitions are generally regarded as a means of managing competitive uncertainty.

If a firm is pursuing a growth strategy, the coevolution perspective would suggest that it divest slow-growth businesses and products.

The potentially conflicting needs of strategic interdependence and ________ can affect optimal organizational structure following a merger or acquisition.

What is the winner's curse?

Overcapacity mergers are often explained as attempts to create ________.

In industry convergence, the objectives include ________.

Sometimes senior managers make decisions based on personal, and not shareholder, interest.

Synergy occurs when the value of two firms combined is greater than the sum of the values of the two firms independently.

When two organizations have a lot in common, cultural differences are limited.

eBay generates revenues only through charging listing and selling fees.

Various tax benefits may provide unique financial synergies.

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