Question 1

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

Accepted Answer

Many firms make the mistake of assuming

Question 2

Which of the following is not one of the factors that can affect the attractiveness of acquisitions as strategy vehicles?

Accepted Answer

A)  technological change 
B)  demographic change 
C)  trade liberalization 
D)  geographical change 
A)  technological change 
B)  demographic change 
C)  trade liberalization 
D)  geographical change

Question 3

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

Question 4

If a target company in an acquisition has operating loss carry-forwards that cannot be fully utilized, the acquiring company can use them to reduce the tax bill of the combined firm.

Accepted Answer

A) True 
 B)False

Question 5

_____ 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 6

Revenue-enhancement opportunities are known as synergies.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a purpose of vertical acquisitions?

Accepted Answer

A)  to secure a reliable supply 
B)  to reduce total production costs across the value chain 
C)  to focus on distinct alliances 
D)  to leverage resources and capabilities of upstream activities to create more value for the customer 
A)  to secure a reliable supply 
B)  to reduce total production costs across the value chain 
C)  to focus on distinct alliances 
D)  to leverage resources and capabilities of upstream activities to create more value for the customer

Question 8

What is a merger?

Accepted Answer

A merger is the cons

Question 9

Upstream acquisitions are acquisitions that result when companies buy some of their customers.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are possible stages in the industry life cycle except ________.

Accepted Answer

A)  introduction 
B)  erosion 
C)  growth 
D)  maturity 
A)  introduction 
B)  erosion 
C)  growth 
D)  maturity

Question 11

Integration problems can arise during the idea generation and justification stages.

Accepted Answer

A) True 
 B)False

Question 12

Acquisitions increase the risk associated with entering new markets.

Accepted Answer

A) True 
 B)False

Question 13

Firms have market power when they can influence ________.

Accepted Answer

A)  competition 
B)  prices 
C)  sourcing 
D)  mergers 
A)  competition 
B)  prices 
C)  sourcing 
D)  mergers

Question 14

Mergers of equals are typically between firms of relatively equal size and influence.

Accepted Answer

A) True 
 B)False

Question 15

When industries overlap, there is a reduction in the level of mergers and acquisitions in the intersecting industries.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the basic types of merger and acquisition transactions?

Accepted Answer

A)  integration 
B)  absorption 
C)  holding 
D)  preservation 
A)  integration 
B)  absorption 
C)  holding 
D)  preservation

Question 18

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 19

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 20

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

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

Which of the following is not one of the factors that can affect the attractiveness of acquisitions as strategy vehicles?

Parties to an overcapacity are trying to ________ the industry.

If a target company in an acquisition has operating loss carry-forwards that cannot be fully utilized, the acquiring company can use them to reduce the tax bill of the combined firm.

_____ entail(s) incremental investment over time.

Revenue-enhancement opportunities are known as synergies.

Which of the following is not a purpose of vertical acquisitions?

What is a merger?

Upstream acquisitions are acquisitions that result when companies buy some of their customers.

All of the following are possible stages in the industry life cycle except ________.

Integration problems can arise during the idea generation and justification stages.

Acquisitions increase the risk associated with entering new markets.

Firms have market power when they can influence ________.

Mergers of equals are typically between firms of relatively equal size and influence.

When industries overlap, there is a reduction in the level of mergers and acquisitions in the intersecting industries.

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

Which of the following is not one of the basic types of merger and acquisition transactions?

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

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

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.

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

Which of the following is not one of the factors that can affect the attractiveness of acquisitions as strategy vehicles?

Parties to an overcapacity are trying to ________ the industry.

If a target company in an acquisition has operating loss carry-forwards that cannot be fully utilized, the acquiring company can use them to reduce the tax bill of the combined firm.

_____ entail(s) incremental investment over time.

Revenue-enhancement opportunities are known as synergies.

Which of the following is not a purpose of vertical acquisitions?

What is a merger?

Upstream acquisitions are acquisitions that result when companies buy some of their customers.

All of the following are possible stages in the industry life cycle except ________.

Integration problems can arise during the idea generation and justification stages.

Acquisitions increase the risk associated with entering new markets.

Firms have market power when they can influence ________.

Mergers of equals are typically between firms of relatively equal size and influence.

When industries overlap, there is a reduction in the level of mergers and acquisitions in the intersecting industries.

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

Which of the following is not one of the basic types of merger and acquisition transactions?

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

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

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.

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