Exam 10: Studying Merges and Acquisitions

An international acquisition can be any of the following types except ________.

A complementary acquisition increase involves a complementary business.

Revenue enhancement synergies are also sometimes referred to as ________.

When a firm uses acquisition as a strategy in lieu of R&D, it is usually trying to gain ownership of the other firm's ________.

When mergers and acquisitions are undertaken in pursuit of synergy which of the following relationships describes the beliefs that guide managers. Let A and B represent the firms involved.

Firms often decide against entering new businesses because they are not likely to generate sufficient return on capital to justify the ________.

To what extent should the target firm and acquiring firm remain strategically independent?

If the cost of the acquisition exceeds the cost to other firms of accumulating comparable resource stocks, the transferring of resources and capabilities will not create long-term competitive advantage.

Hubristic managers may underestimate their own abilities to implement potential synergies.

What is the rationale behind a roll-up strategy?

In an overcapacity acquisition, the objectives include ________.

To overcome a supplier's reluctance to making a large investment for the benefit of one buyer, the buyer may need to integrate vertically backward into the supply chain by ________.

During the growth stage of the industry life cycle, acquisitions tend to involve the purchase of start-up firms by well-established firms.

What are some of the possible vehicle benefits of acquisitions?

All of the following are critical decisions that need to be made during the justification stage except ________.

Decision-making problems may arise during which of the following stages?

What is the winner's curse?

Cost savings are the most common synergy.

Discuss the drawbacks of acquisitions over internal development.

The purpose of a geographic roll-up is achieving economies of scope and scale.