Question 1

In a product/market extension, 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

Question 2

Primary sources of competitive advantage include resources, knowledge, and capabilities.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Cultural clashes can facilitate the integration of two firms.

Accepted Answer

A) True 
 B)False

Question 5

The basic category of ________ motives for mergers and acquisitions usually reflects shareholders' best interests.

Accepted Answer

A)  hubris 
B)  managerial self-interest 
C)  synergy 
D)  synchronicity 
A)  hubris 
B)  managerial self-interest 
C)  synergy 
D)  synchronicity

Question 6

A Greek term used in business to denote excess pride, overconfidence, or arrogance is ________.

Accepted Answer

A)  synergy 
B)  polycon 
C)  halycon 
D)  hubris 
A)  synergy 
B)  polycon 
C)  halycon 
D)  hubris

Question 7

Briefly explain the four stages of an acquisition.

Accepted Answer

There are four major stages in an acquis

Question 8

Synergy value is a function of the strategic fit of the acquiring and the target firms.

Accepted Answer

A) True 
 B)False

Question 9

Through a merger or acquisition, firms may be able to create a bundle of resources that is unavailable to competitors.

Accepted Answer

A) True 
 B)False

Question 10

If a company improves its competitive position by means of a merger or acquisition, it may be possible to derive potential market power from the deal.

Accepted Answer

A) True 
 B)False

Question 11

Why is it important for managers to be specific in identifying the possible benefits and problems of an acquisition?

Accepted Answer

Managers should be as specific as possib

Question 12

Managers may be willing to compromise shareholder interests and make acquisitions that do nothing more than increase the size of the firm.

Accepted Answer

A) True 
 B)False

Question 13

What are the three points that managers need to consider prior to making an acquisition decision?

Accepted Answer

Three points need to be kept in mind whe

Question 14

All of the following are notable acquisition mistakes except ________.

Accepted Answer

A)  AT&T's acquisition of NCR 
B)  Quaker's acquisition of Snapple 
C)  AOL's acquisition of Time Warner 
D)  eBay's acquisition of PayPal 
A)  AT&T's acquisition of NCR 
B)  Quaker's acquisition of Snapple 
C)  AOL's acquisition of Time Warner 
D)  eBay's acquisition of PayPal

Question 15

Name some of the possible sources of synergy.

Accepted Answer

Synergy may derive from the following so

Question 16

Acquisitions are typically all-or-nothing propositions.

Accepted Answer

A) True 
 B)False

Question 17

A strategy where a firm acquires other firms in the same industry segment, but in different geographic arenas, is referred to as a(n) ________.

Accepted Answer

A)  product-extension acquisition 
B)  vertical acquisition 
C)  geographic roll-up 
D)  complementary acquisition 
A)  product-extension acquisition 
B)  vertical acquisition 
C)  geographic roll-up 
D)  complementary acquisition

Question 18

Acquisitions enable companies to accelerate their strategies.

Accepted Answer

A) True 
 B)False

Question 19

When deciding to enter a new business, companies have alternative vehicles to choose from, including all of the following except ________.

Accepted Answer

A)  external development 
B)  internal development 
C)  alliances 
D)  acquisitions 
A)  external development 
B)  internal development 
C)  alliances 
D)  acquisitions

Question 20

An acquisition can raise the financing costs of the target firm when the two firms' respective credit ratings are markedly different.

Accepted Answer

A) True 
 B)False

In a product/market extension, the objectives include ________.

Primary sources of competitive advantage include resources, knowledge, and capabilities.

A complementary business is one that ________.

Cultural clashes can facilitate the integration of two firms.

The basic category of ________ motives for mergers and acquisitions usually reflects shareholders' best interests.

A Greek term used in business to denote excess pride, overconfidence, or arrogance is ________.

Briefly explain the four stages of an acquisition.

Synergy value is a function of the strategic fit of the acquiring and the target firms.

Through a merger or acquisition, firms may be able to create a bundle of resources that is unavailable to competitors.

If a company improves its competitive position by means of a merger or acquisition, it may be possible to derive potential market power from the deal.

Why is it important for managers to be specific in identifying the possible benefits and problems of an acquisition?

Managers may be willing to compromise shareholder interests and make acquisitions that do nothing more than increase the size of the firm.

What are the three points that managers need to consider prior to making an acquisition decision?

All of the following are notable acquisition mistakes except ________.

Name some of the possible sources of synergy.

Acquisitions are typically all-or-nothing propositions.

A strategy where a firm acquires other firms in the same industry segment, but in different geographic arenas, is referred to as a(n) ________.

Acquisitions enable companies to accelerate their strategies.

When deciding to enter a new business, companies have alternative vehicles to choose from, including all of the following except ________.

An acquisition can raise the financing costs of the target firm when the two firms' respective credit ratings are markedly different.

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

In a product/market extension, the objectives include ________.

Primary sources of competitive advantage include resources, knowledge, and capabilities.

A complementary business is one that ________.

Cultural clashes can facilitate the integration of two firms.

The basic category of ________ motives for mergers and acquisitions usually reflects shareholders' best interests.

A Greek term used in business to denote excess pride, overconfidence, or arrogance is ________.

Briefly explain the four stages of an acquisition.

Synergy value is a function of the strategic fit of the acquiring and the target firms.

Through a merger or acquisition, firms may be able to create a bundle of resources that is unavailable to competitors.

If a company improves its competitive position by means of a merger or acquisition, it may be possible to derive potential market power from the deal.

Why is it important for managers to be specific in identifying the possible benefits and problems of an acquisition?

Managers may be willing to compromise shareholder interests and make acquisitions that do nothing more than increase the size of the firm.

What are the three points that managers need to consider prior to making an acquisition decision?

All of the following are notable acquisition mistakes except ________.

Name some of the possible sources of synergy.

Acquisitions are typically all-or-nothing propositions.

A strategy where a firm acquires other firms in the same industry segment, but in different geographic arenas, is referred to as a(n) ________.

Acquisitions enable companies to accelerate their strategies.

When deciding to enter a new business, companies have alternative vehicles to choose from, including all of the following except ________.

An acquisition can raise the financing costs of the target firm when the two firms' respective credit ratings are markedly different.

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