Deck 3: Mergers and Acquisitions: Part B

Question 1

___________ defines the various terms connected with takeover like acquirer, acquisition, target company, etc.

A)Regulation 2
B)Regulation 3(1)
C)Regulation 3(3)
D)Regulation 4

Answer 1

Regulation 2

Question 2

__________ should be in public interest.

A)Amalgamation
B)Takeover
C)Merger
D)Demerger

Answer 2

Amalgamation

Question 3

The _________ is the process of making changes in the composition of a firms one or more business portfolio in order to have a more profitable enterprise.

A)Corporate Restructuring
B)Communication
C)Ownership
D)Capital Structure

Answer 3

Corporate Restructuring

Question 4

________ takes place when one company acquires control over other company by way of purchase or exchange of shares.

A)Merger
B)Demerger
C)Takeover
D)Disinvestment

Question 5

The Competition Act essentially considers _________ kinds of anti- competitive agreements.

A)one
B)Two
C)Three
D)Four

Question 6

The _____________ has exempted the payment of stamp duty on instrument evidencing transfer of property between companies limited by shares.

A)State Government
B)Central Government
C)Both (a) & (b)
D)Parliament

Question 7

Amalgamated entities can assess to _______ number of market resources.

A)Smaller
B)Larger
C)Limited
D)All of the above

Question 8

The risk of investors can be __________ through adequate transparency and disclosures.

A)Minimized
B)Maximized
C)Both (a) & (b)
D)None of the above

Question 9

___________ is the form of demerger where shareholders of existing company form a new company to takeover specific division of existing company.

A)Spin off
B)Split off
C)Split up
D)All of the above

Question 10

___________ is a combination of two or more companies into an existing company.

A)Absorption
B)Consolidation
C)Both (a) & (b)
D)Franchising

Question 11

_________ helps in enhancing market leadership of the company.

A)Merger
B)Demerger
C)Amalgamation
D)Takeover

Question 12

After meeting, the _________ of the meeting shall report the result thereof to the court.

A)Chairman
B)Board of Directors
C)Shareholder
D)All of the above

Question 13

The company or companies which so merge being referred to as the _______ company or companies.

A)Amalgamated
B)Amalgamating
C)Both (a) & (b)
D)Partnership Firm

Question 14

An existing company transfers its various divisions to one or more new companies formed for the purpose, is said to be ______________

A)Partial demerger
B)Complete demerger
C)Takeover
D)Disinvestment

Question 15

_________ takes place when a healthy company merges with a financially weak company.

A)Reverse Merger
B)Demerger
C)Takeover
D)Disinvestment

Question 16

_________may be defined as an arrangement where one party grants another party the right to use trade name.

A)Alliance
B)Franchising
C)Slump Sale
D)Joint Venture

Question 17

A popular defence mechanism against hostile takeover bids is the creation of securities called ___________

A)Shark Repellents
B)Poison Pills
C)Packman defence
D)The Crown Jewel

Question 18

_______ has laid down the guidelines for takeovers in order to protect the interest of the small investors.

A)SEBI
B)RBI
C)Both (a) & (b)
D)Government

Question 19

A _________merger is a merger of business firms who are engaged into same line of business.

A)Horizontal
B)Vertical
C)Conglomerate
D)Co generic

Question 20

The restructuring of companies by way of takeover is governed by _________

A)SEBI
B)RBI
C)Government
D)All of the above

Question 21

________ is a technique of corporate restructuring in which an independent company is created from parent company in order to promote specialization.

A)Merger
B)Demerger
C)Takeover
D)Disinvestment

Question 22

A ________is a combination of two or more companies into a new company.

A)Consolidation
B)Absorption
C)Both (a) & (b)
D)Demerger

Question 23

_______ merger takes place upon the combination of two companies which are operating in the same industry but at different stages of production or distribution system.

A)Vertical
B)Horizontal
C)Co generic
D)Conglomerate

Question 24

__________is a venture in which an enterprise is formed with participation in the ownership, control and management of minimum of two parties.

A)Joint Venture
B)Takeover
C)Franchising
D)Demerger

Question 25

-------- growth is through enhanced customer base, higher sales, increased revenue, money material , machinery ect.

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