Question 1

The initial pre-closing screening, analysis, and negotiations for an acquisition is referred to as ________.

Accepted Answer

A)  idea generation 
B)  justification 
C)  due diligence 
D)  symbiosis 
A)  idea generation 
B)  justification 
C)  due diligence 
D)  symbiosis

Question 2

Define geographic roll-up.

Accepted Answer

A geographic roll-up occurs wh

Question 3

Firms may find internal development preferable to acquisitions for all of the following reasons except ________.

Accepted Answer

A)  acquisitions are less expensive than internal development 
B)  internal development entails incremental investment over time 
C)  acquisitions are all-or-nothing propositions 
D)  organizational conflict is more likely during acquisitions 
A)  acquisitions are less expensive than internal development 
B)  internal development entails incremental investment over time 
C)  acquisitions are all-or-nothing propositions 
D)  organizational conflict is more likely during acquisitions

Question 4

_____ 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 5

Explain some of the possible sources for synergy.

Accepted Answer

Synergy may derive from a number of sour

Question 6

Intrinsic synergy value is the sum of all of the following except ________.

Accepted Answer

A)  cost savings 
B)  revenue enhancements 
C)  financial-engineering activities 
D)  technological efficiencies 
A)  cost savings 
B)  revenue enhancements 
C)  financial-engineering activities 
D)  technological efficiencies

Question 7

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 8

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 9

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

Accepted Answer

A)  acquisition 
B)  merger 
C)  purchase 
D)  procurement 
A)  acquisition 
B)  merger 
C)  purchase 
D)  procurement

Question 10

List the four stages of the acquisition process.

Accepted Answer

The four stages in a

Question 11

Transferring best practices and core competencies can create value.

Accepted Answer

A) True 
 B)False

Question 12

Acquisitions have implications for the financial success of strategies, or in other words the realization of the anticipated ________ of the strategy.

Accepted Answer

A)  economic logic 
B)  competitive advantage 
C)  knowledge increase 
D)  margins 
A)  economic logic 
B)  competitive advantage 
C)  knowledge increase 
D)  margins

Question 13

Historically, deregulation has had a major impact on the volume of merger and acquisition activity in certain industries.

Accepted Answer

A) True 
 B)False

The initial pre-closing screening, analysis, and negotiations for an acquisition is referred to as ________.

Define geographic roll-up.

Firms may find internal development preferable to acquisitions for all of the following reasons except ________.

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

Explain some of the possible sources for synergy.

Intrinsic synergy value is the sum of all of the following except ________.

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

In industry convergence, the objectives include ________.

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

List the four stages of the acquisition process.

Transferring best practices and core competencies can create value.

Acquisitions have implications for the financial success of strategies, or in other words the realization of the anticipated ________ of the strategy.

Historically, deregulation has had a major impact on the volume of merger and acquisition activity in certain industries.

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

The initial pre-closing screening, analysis, and negotiations for an acquisition is referred to as ________.

Define geographic roll-up.

Firms may find internal development preferable to acquisitions for all of the following reasons except ________.

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

Explain some of the possible sources for synergy.

Intrinsic synergy value is the sum of all of the following except ________.

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

In industry convergence, the objectives include ________.

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

List the four stages of the acquisition process.

Transferring best practices and core competencies can create value.

Acquisitions have implications for the financial success of strategies, or in other words the realization of the anticipated ________ of the strategy.

Historically, deregulation has had a major impact on the volume of merger and acquisition activity in certain industries.

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