Question 1

One of the disadvantages of mergers is that employees might have to reapply for their old jobs.

Accepted Answer

A) True 
 B)False

Question 2

Early on in a merger,company executives and HR planners have to decide if one culture will be grafted onto that of the other,or if the two will merge to create a third culture.According to researchers,four options are open to organizations involved in M&As.Discuss these four options.

Accepted Answer

The answer of Early on in a merger,company executives and...

Question 3

Typically,mergers and acquisitions do not result in layoffs or the reduction of the size of the workforce.

Accepted Answer

A) True 
 B)False

Question 4

One option for those involved in merging cultures is for the partner organizations to blend current cultures together.What is this called?

Accepted Answer

A) cultural pluralism 
B) cultural integration 
C) cultural assimilation 
D) cultural transformation

Question 5

Mergers and acquisitions can be classified as corporate restructuring strategies.

Accepted Answer

A) True 
 B)False

Question 6

Pension plans are often the root cause of failed merger deals.

Accepted Answer

A) True 
 B)False

Question 7

An example of a conglomerate merger is three hospitals in Toronto-York Finch,Humber Memorial,and Northwestern General-merging in response to budget cutbacks.

Accepted Answer

A) True 
 B)False

Question 8

If a company is able to use one set of inputs to produce a wider range of products and services,what is this ability called?

Accepted Answer

A) economies of scale 
B) economy of advantage 
C) economy of scope 
D) economies of productivity

Question 9

What type of strategy is applied when the targeted company makes a counteroffer for the bidding firm?

Accepted Answer

A) hostile takeover 
B) poison pill 
C) white knight 
D) Pac-Man

Question 10

What is the percentage of all merger failure due to the mismanagement of the organization's culture?

Accepted Answer

A) 90 percent 
B) 65 percent 
C) 50 percent 
D) 85 percent

Question 11

Culture can be likened to the social glue that binds individuals together in an organization.

Accepted Answer

A) True 
 B)False

Question 12

"White knights" refers to a situation in which key players have the right to purchase shares at a huge discount,which makes takeovers extremely expensive.

Accepted Answer

A) True 
 B)False

Question 13

A conglomerate merger occurs when one company merges with another but the two companies have no competitive or buyer-seller relationship.

Accepted Answer

A) True 
 B)False

Question 14

List two major results of the research surrounding success rates of mergers and acquisitions.

Accepted Answer

The answer of List two major results of the research...

Question 15

What issues are responsible for the failure of one-third to one-half of mergers?

Accepted Answer

A) strategic 
B) financial 
C) employee 
D) organizational

Question 16

Economies-of-scale benefit is the ability of a firm to use one set of inputs to produce a wider range of products and services.

Accepted Answer

A) True 
 B)False

Question 17

What is one financial benefit of a merger?

Accepted Answer

A) tax advantages 
B) reduced debt load 
C) increased stock price 
D) higher productivity

Question 18

What was the main reason that the merger of Daimler-Benz and Chrysler failed?

Accepted Answer

A) The companies were rivals,and their communication channels never fully opened. 
B) The merger was too time-consuming for the companies to worry about operations. 
C) The companies were from two different countries and had different corporate cultures. 
D) The two types of cars were expensive and inexpensive and consumers could not reconcile this.

Question 19

Operating synergy is the cost reductions achieved by economies of scales produced by a merger or acquisition.

Accepted Answer

A) True 
 B)False

Question 20

Deculturation describes the feeling of inclusion from the dominant partner in a merger even though the organizational cultures may be different.

Accepted Answer

A) True 
 B)False

Exam 12: Mergers and Acquisitions

One of the disadvantages of mergers is that employees might have to reapply for their old jobs.

Early on in a merger,company executives and HR planners have to decide if one culture will be grafted onto that of the other,or if the two will merge to create a third culture.According to researchers,four options are open to organizations involved in M&As.Discuss these four options.

Typically,mergers and acquisitions do not result in layoffs or the reduction of the size of the workforce.

One option for those involved in merging cultures is for the partner organizations to blend current cultures together.What is this called?

Mergers and acquisitions can be classified as corporate restructuring strategies.

Pension plans are often the root cause of failed merger deals.

An example of a conglomerate merger is three hospitals in Toronto-York Finch,Humber Memorial,and Northwestern General-merging in response to budget cutbacks.

If a company is able to use one set of inputs to produce a wider range of products and services,what is this ability called?

What type of strategy is applied when the targeted company makes a counteroffer for the bidding firm?

What is the percentage of all merger failure due to the mismanagement of the organization's culture?

Culture can be likened to the social glue that binds individuals together in an organization.

"White knights" refers to a situation in which key players have the right to purchase shares at a huge discount,which makes takeovers extremely expensive.

A conglomerate merger occurs when one company merges with another but the two companies have no competitive or buyer-seller relationship.

List two major results of the research surrounding success rates of mergers and acquisitions.

What issues are responsible for the failure of one-third to one-half of mergers?

Economies-of-scale benefit is the ability of a firm to use one set of inputs to produce a wider range of products and services.

What is one financial benefit of a merger?

What was the main reason that the merger of Daimler-Benz and Chrysler failed?

Operating synergy is the cost reductions achieved by economies of scales produced by a merger or acquisition.

Deculturation describes the feeling of inclusion from the dominant partner in a merger even though the organizational cultures may be different.