Deck 7: Key Considerations in Mergers and Acquisitions

Question 1

The ______________ of the merged company determines its success or failure.

A)Earning
B)Net profit
C)Capitalisation
D)Assets

Answer 1

Capitalisation

Question 2

____________ is one of the valuation criteria for measuring the success of post merged company.

A)Financial Value
B)Market Value
C)Fair Market Value
D)Culture

Answer 2

Fair Market Value

Question 3

_____________ is an incredibly challenging process that senior executives are required to undertake in parallel to managing their core business operations.

A)Human Resource Management
B)Post-Merger Integration
C)General management integration
D)Product and service development.

Answer 3

Post-Merger Integration

Question 4

The earning performance of the merged company can be measured by return on total ___________ and total net worth.

A)Assets
B)liabilities
C)Share Capital
D)Market Value

Question 5

Under section 72A of Income tax act, 1961 carry forward and setting off of accumulated losses and unabsorbed depreciation of the amalgamating company is allowed against the __________ profits of the amalgamated company in order to encourage revival of sick units.

A)Future
B)Present
C)Past
D)Market Value

Question 6

The merged firm would enjoy ___________ debt capacity because the combination of two or more firms provide greater stability to the earnings level.

A)Lower
B)Higher
C)Stable
D)Non of the above

Question 7

Merger/Amalgamation of two or more firms has been used as a dominant business strategy to seek rapid growth and ___________.

A)Stabilisation
B)Expansion
C)Diversification
D)Utilisation

Question 8

The company which is subjected to _____________ will need to align its internal processes with that of the merged entity / acquired entity.

A)Restructuring
B)Post-Merger Integration
C)Share Capital
D)Non of the above

Question 9

The earning performance of the merged company can be measured by return on total ___________ and return on net worth.

A)Assets
B)Liabilities
C)Share Capital
D)Financial Value

Question 10

The ____________ improves the competitive position of the merged firm as it can command an increased market share.

A)Merger
B)Acquisition
C)Stabilisation
D)Expansion

Question 11

The earning performance of the merged company can be measured by return on total assets and return on___________.

A)Assets
B)Liabilities
C)Share Capital
D)Net Worth

Question 12

Merger/Amalgamation of two or more firms has been used as a dominant business strategy to seek rapid __________ and Diversification.

A)Stabilisation
B)Expansion
C)Utilisation
D)Growth

Question 13

There are _______ sets of rules for a successful PMI.

A)20
B)15
C)10
D)5

Question 14

The net result of realizing economics of scale would be an __________ in the cost of production.

A)Increase
B)Decrease
C)Stable
D)None of the above

Question 15

Modern markets always dictate __________ innovation and improvement on product and services.

A)Continuous
B)Stable
C)Increased
D)None of the above

Question 16

__________ involves the utilization of resources.

A)Management
B)Analysis
C)Culture
D)Net Profit

Question 17

The capitalisation of the ___________ company determines its success or failure.

A)Expansion
B)Net profit
C)Merged
D)Assets

Question 18

Whenever the merged firm raises funds from the market through public issue of shares or debentures, it can ___________ the floating cost.

A)Reduce
B)Increase
C)Constant
D)None of the above.

Question 19

Modern markets always dictate Continuous innovation and __________ on product and services.

A)Improvement
B)Stable
C)Increased
D)None of the above

Question 20

The earning Performance of the merged cannot be measured by return on total share price and return on ________ worth.

A)Net
B)Average
C)Future
D)Higher

Question 21

Companies need to be __________ with regards to terms and conditions of employment.

A)Sensitive
B)Careless
C)Favourable
D)None of the above

Question 22

Post acquisition, the parent company may want to acquired company to adopt ______________ structure of the parent entity.

A)Salary
B)Communication
C)Compensation
D)Conditions

Question 23

The company which is subjected to restructuring will need to align its ___________ processes with that of the merged entity.

A)Internal
B)External
C)Domestic
D)International

Question 24

Restructuring typically would entail ___________ of persons operating on various positions/grades in similar functions.

A)Re-allocation
B)Administration
C)Acquisition
D)None of the above

Question 25

A careful __________ is needed to avoid overlapping, underutilization of staff and to take care of career progression.

A)Organizing
B)Planning
C)Controlling
D)Re-defining

Question 26

The company which is subjected to ____________ will need to align its internal processes with that of the merged entity.

A)Restructuring
B)Merger
C)Amalgamation
D)External

Question 27

If accompany is occupying leased premises, one should check conditions under the __________ agreement and complete necessary formalities.

A)Restructuring
B)Lease
C)Merged
D)None of the above

Question 28

Restructuring could lead to changes in existing certificates such as _________ or similar other certifications.

A)ISO
B)FSI
C)SEZ
D)All of the above

Question 29

Restructuring is not always about __________ decisions or actions.

A)Present
B)Future
C)Past
D)None of the above