Question 1

If a company that was acquired in a secondary buyout get sold to another financial sponsor is called a ----------- buyout.

Accepted Answer

A)  Primary
B)  Secondary
C)  Tertiary
D)  Management buyout C

Question 2

------------------- strategy involves a significant change in the financial structure of the business firm.

Accepted Answer

A)  Financial Restructuring
B)  Financial Planning
C)  Financial Management
D)  Financial Services A

Question 3

Before the buyback of shares, the company shall file with the Registrar of Companies a letter of offer in e-form --------.

Accepted Answer

A)  SH-8
B)  SH-9
C)  SH-10
D)  SH-11 A

Question 4

------------- is a corporate action in which a company buy back its shares from the existing shareholders usually at a price higher than market price.

Accepted Answer

A)  Buy -Back
B)  Free Reserve
C)  Bonus issue
D)  Forfeiting

Question 5

------------- are commercial loans raised by eligible resident entities from reorganised nonresident entities.

Accepted Answer

A)  External commercial borrowings
B)  Commercial bills
C)  Treasury bills
D)  Credit note

Question 6

A---------- buyout is a form of leveraged buyout where both the buyer and the seller are private equity firms.

Accepted Answer

A)  Primary
B)  Secondary
C)  Tertiary
D)  Management buyout

Question 7

A ------------ is a merger of business firm who are engaged in unrelated business.

Accepted Answer

A)  horizontal
B)  Vertical
C)  Conglomerate
D)  Market extention

Question 8

The company shall maintain a register of buyback for shares and other securities in form no.------------- at the registeredoffice of the company.

Accepted Answer

A)  SH-8
B)  SH-9
C)  SH-10
D)  SH-11

Question 9

The company shall file with the Registrar of Companies, along with the letter of offer, and declaration of solvency in e-form --------------.

Accepted Answer

A)  SH-8
B)  SH-9
C)  SH-10
D)  SH-11

Question 10

----------------of the company shall contain on enabling provision for buyback of shares.

Accepted Answer

A)  Article of Association
B)  Memorandum of Association
C)  Prospectus
D)  Offer document

Question 11

A-------------- is a type of corporate action in which an acquiring company makes an offer to the target company's shareholders to buy the target company's shares to gain control of the business.

Accepted Answer

A)  Takeover bid
B)  Merger bid
C)  Finance bid
D)  Invitation bid

Question 12

In an------------------, the incumbent management team, acquires a sizeable portion of shares of the company.

Accepted Answer

A)  MBO
B)  LBO
C)  MBI
D)  MBS

Question 13

In stock swap merger the holder of target company's stock receive --------- of the acquiring company's stock.

Accepted Answer

A)  Shares
B)  Debentures
C)  Deposits
D)  Bonds

Question 14

A---------- is the acquisition of a company or division of another company, financed with the substantial portion of borrowed funds.

Accepted Answer

A)  Leveraged buyout
B)  Rehabilitation finance
C)  Corporate finance
D)  Institutional finance

Question 15

A ---------- is a financial transaction in which a company is purchased with a combination of equity and debt.

Accepted Answer

A)  Leveraged buyout
B)  Rehabilitation finance
C)  Borrowed finance
D)  Corporate finance

Question 16

When sick industries gets merged with healthy units with financial package is termed as- -----

Accepted Answer

A)  Financial rehabilitation
B)  LBO
C)  ECBs
D)  Corporate finance

Question 17

The acquirer must have or needs to purchase more than -------% of the paid up equity capital of other company which the acquirer intended to overtake.

Accepted Answer

A)  50
B)  75
C)  25
D)  51

Question 18

----------growth provides an organisation with an aim of achieving accelerated or increased growth through mergers, amalgamation ect.

Accepted Answer

A)  Organised
B)  Unorganised
C)  Systematic
D)  Instant

Question 19

The ---------is prepared by insolvency resulation applicant and submitted to insolvency professional who seek the consent of committee of creditors.

Accepted Answer

A)  Insolvency resulation plan
B)  Rehabilitation plan
C)  Insolvency report
D)  Resulation draft

Question 20

A -------- merger is a merger of business firm engaged into same line of business.

Accepted Answer

A)  horizontal
B)  vertical
C)  conglomerate
D)  market extention

Exam 6: Mergers, Acquisitions, and Buybacks: Understanding Corporate Growth Strategies