Question 1

How do sharing and leveraging capabilities lead to synergy?

Accepted Answer

Transferring best practices and core com

Question 2

When a publicly traded firm is acquired by another firm, the purchase price is almost always less than the target firm's market value.

Accepted Answer

A) True 
 B)False

Question 3

A danger of developing a new business over acquiring an existing one is that the firm may ________.

Accepted Answer

A)  lose customers 
B)  lose economies of scale and scope 
C)  expend existing resources 
D)  spend too much money on technology 
A)  lose customers 
B)  lose economies of scale and scope 
C)  expend existing resources 
D)  spend too much money on technology

Question 4

The financial organization that has become the de facto payment standard on the biggest locus of small business in the world is ________.

Accepted Answer

A)  eBay 
B)  PayPal 
C)  Mastercard 
D)  Visa 
A)  eBay 
B)  PayPal 
C)  Mastercard 
D)  Visa

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Why is there no single correct price for an acquisition or merger?

Accepted Answer

There's no single correct price for an a

Question 7

Divestiture is a simple form of acquisition.

Accepted Answer

A) True 
 B)False

Question 8

What are the three basic issues related to the potential success of mergers and acquisitions?

Accepted Answer

The three basic issues related

Question 9

The larger the target firm, the shorter the time it will take to absorb it.

Accepted Answer

A) True 
 B)False

Question 10

Mergers and acquisitions in converging industries will put firms at a disadvantage when industry boundaries erode.

Accepted Answer

A) True 
 B)False

Question 11

When a merger takes place, there is a transfer of ownership.

Accepted Answer

A) True 
 B)False

Question 12

Managers may willingly overpay in mergers and acquisitions in order to maximize their own interests.

Accepted Answer

A) True 
 B)False

Question 13

Improved efficiencies come from reducing redundant operations and ________.

Accepted Answer

A)  hiring a new level of middle managers 
B)  developing an increased number of production lines 
C)  integrating similar firms 
D)  trimming the size of combined units 
A)  hiring a new level of middle managers 
B)  developing an increased number of production lines 
C)  integrating similar firms 
D)  trimming the size of combined units

Question 14

All of the following are stages in an acquisition except ________.

Accepted Answer

A)  rationalization 
B)  idea generation 
C)  justification 
D)  integration 
A)  rationalization 
B)  idea generation 
C)  justification 
D)  integration

Question 15

The motives behind mergers and acquisitions can fall into a basic category called synchronicity.

Accepted Answer

A) True 
 B)False

Question 16

Vertical acquisitions help fill out the company's product offerings.

Accepted Answer

A) True 
 B)False

Question 17

Acquisitions in a(n) ________ environment are attempts by companies to acquire resources that will be critical in future projected new industry contexts.

Accepted Answer

A)  industry-convergence 
B)  hostile takeover 
C)  internally competitive 
D)  international conglomerate 
A)  industry-convergence 
B)  hostile takeover 
C)  internally competitive 
D)  international conglomerate

Question 18

The purchase price is almost always greater than current market value.

Accepted Answer

A) True 
 B)False

Question 19

Mergers and acquisitions are recognized as strategies in and of themselves.

Accepted Answer

A) True 
 B)False

Question 20

Advantages of choosing acquisition over internal development include all except which of the following?

Accepted Answer

A)  speed 
B)  immediate critical mass 
C)  access to complementary assets and resources 
D)  leveraging in-house design technology 
A)  speed 
B)  immediate critical mass 
C)  access to complementary assets and resources 
D)  leveraging in-house design technology

How do sharing and leveraging capabilities lead to synergy?

When a publicly traded firm is acquired by another firm, the purchase price is almost always less than the target firm's market value.

A danger of developing a new business over acquiring an existing one is that the firm may ________.

The financial organization that has become the de facto payment standard on the biggest locus of small business in the world is ________.

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

Why is there no single correct price for an acquisition or merger?

Divestiture is a simple form of acquisition.

What are the three basic issues related to the potential success of mergers and acquisitions?

The larger the target firm, the shorter the time it will take to absorb it.

Mergers and acquisitions in converging industries will put firms at a disadvantage when industry boundaries erode.

When a merger takes place, there is a transfer of ownership.

Managers may willingly overpay in mergers and acquisitions in order to maximize their own interests.

Improved efficiencies come from reducing redundant operations and ________.

All of the following are stages in an acquisition except ________.

The motives behind mergers and acquisitions can fall into a basic category called synchronicity.

Vertical acquisitions help fill out the company's product offerings.

Acquisitions in a(n) ________ environment are attempts by companies to acquire resources that will be critical in future projected new industry contexts.

The purchase price is almost always greater than current market value.

Mergers and acquisitions are recognized as strategies in and of themselves.

Advantages of choosing acquisition over internal development include all except which of the following?

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

How do sharing and leveraging capabilities lead to synergy?

When a publicly traded firm is acquired by another firm, the purchase price is almost always less than the target firm's market value.

A danger of developing a new business over acquiring an existing one is that the firm may ________.

The financial organization that has become the de facto payment standard on the biggest locus of small business in the world is ________.

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

Why is there no single correct price for an acquisition or merger?

Divestiture is a simple form of acquisition.

What are the three basic issues related to the potential success of mergers and acquisitions?

The larger the target firm, the shorter the time it will take to absorb it.

Mergers and acquisitions in converging industries will put firms at a disadvantage when industry boundaries erode.

When a merger takes place, there is a transfer of ownership.

Managers may willingly overpay in mergers and acquisitions in order to maximize their own interests.

Improved efficiencies come from reducing redundant operations and ________.

All of the following are stages in an acquisition except ________.

The motives behind mergers and acquisitions can fall into a basic category called synchronicity.

Vertical acquisitions help fill out the company's product offerings.

Acquisitions in a(n) ________ environment are attempts by companies to acquire resources that will be critical in future projected new industry contexts.

The purchase price is almost always greater than current market value.

Mergers and acquisitions are recognized as strategies in and of themselves.

Advantages of choosing acquisition over internal development include all except which of the following?

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