Question 1

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 A

Question 2

eBay generates revenues only through charging listing and selling fees.

Accepted Answer

A) True 
 B)False  False

Question 3

In a geographic roll-up acquisition, the objectives include ________.

Accepted Answer

A)  efficiency of larger operations 
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)  efficiency of larger operations 
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

Question 4

Entry by acquisition may foster ________.

Accepted Answer

A)  a less competitive environment 
B)  a more competitive environment 
C)  diminished resources 
D)  decreased profits 
A)  a less competitive environment 
B)  a more competitive environment 
C)  diminished resources 
D)  decreased profits

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

What are the two possible problems caused by acquisition premiums?

Accepted Answer

Premiums present two problems for manage

Question 7

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 8

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

Accepted Answer

In a product-extension acquisition, the

Question 9

Name the three purposes of vertical acquisition.

Accepted Answer

A vertical acquisition has three purpose

Question 10

A supplier may not make an investment that is specific to one buyer for all except which of the following reasons?

Accepted Answer

A)  The investment would tie the supplier too closely to one buyer. 
B)  The investment would expose the supplier to too many risks. 
C)  The investment would increase sales beyond what the supplier could handle. 
D)  The investment would overtax the supplier's financial means. 
A)  The investment would tie the supplier too closely to one buyer. 
B)  The investment would expose the supplier to too many risks. 
C)  The investment would increase sales beyond what the supplier could handle. 
D)  The investment would overtax the supplier's financial means.

Question 11

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 12

In a market-expansion acquisition, the acquiring company expands its product line by purchasing another company.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Acquisitions in which firms purchase their customers are called ________ acquisitions.

Accepted Answer

A)  downstream vertical 
B)  downstream horizontal 
C)  upstream vertical 
D)  upstream horizontal 
A)  downstream vertical 
B)  downstream horizontal 
C)  upstream vertical 
D)  upstream horizontal

Question 15

Mergers may be designed to improve market access for both companies in geographic markets where individually they are weak.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

The following is a list of questions tha

Question 17

Some firms use acquisitions instead of internal research and development.

Accepted Answer

A) True 
 B)False

Question 18

An integration manager is appointed to oversee the merger of two firms.

Accepted Answer

A) True 
 B)False

Question 19

Even though the logic behind each form of acquisition varies, the criteria for judging their success are the same.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Overcapacity mergers are often explained as attempts to create ________.

eBay generates revenues only through charging listing and selling fees.

In a geographic roll-up acquisition, the objectives include ________.

Entry by acquisition may foster ________.

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

What are the two possible problems caused by acquisition premiums?

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

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

Name the three purposes of vertical acquisition.

A supplier may not make an investment that is specific to one buyer for all except which of the following reasons?

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

In a market-expansion acquisition, the acquiring company expands its product line by purchasing another company.

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

Acquisitions in which firms purchase their customers are called ________ acquisitions.

Mergers may be designed to improve market access for both companies in geographic markets where individually they are weak.

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

Some firms use acquisitions instead of internal research and development.

An integration manager is appointed to oversee the merger of two firms.

Even though the logic behind each form of acquisition varies, the criteria for judging their success are the same.

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

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

Overcapacity mergers are often explained as attempts to create ________.

eBay generates revenues only through charging listing and selling fees.

In a geographic roll-up acquisition, the objectives include ________.

Entry by acquisition may foster ________.

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

What are the two possible problems caused by acquisition premiums?

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

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

Name the three purposes of vertical acquisition.

A supplier may not make an investment that is specific to one buyer for all except which of the following reasons?

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

In a market-expansion acquisition, the acquiring company expands its product line by purchasing another company.

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

Acquisitions in which firms purchase their customers are called ________ acquisitions.

Mergers may be designed to improve market access for both companies in geographic markets where individually they are weak.

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

Some firms use acquisitions instead of internal research and development.

An integration manager is appointed to oversee the merger of two firms.

Even though the logic behind each form of acquisition varies, the criteria for judging their success are the same.

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

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