<<12345678910111213141516171819202122232425262728293031323334353637383940>> 1. What does a merger typically involve?Splitting a single business into multiple entitiesTwo businesses merging into oneSelling off a company's divisionsCombining businesses with competitorsQuestion 1 of 40 2. Which type of merger often leads to a larger market share and potential monopoly?Horizontal mergerVertical mergerConglomerate mergerReverse mergerQuestion 2 of 40 3. When do vertical mergers occur?When companies in the same market sector mergeWhen unrelated businesses mergeWhen buyer-seller relationships mergeWhen two companies are technologically similarQuestion 3 of 40 4. What defines a conglomerate merger?Merger of companies with similar market segmentsUnrelated businesses mergingCompanies in a "buyer-seller" relationship mergingMerging companies with similar fundamental technologiesQuestion 4 of 40 5. In which type of merger does the acquirer expand into similar business activities?Horizontal mergerConglomerate mergerCongeneric mergerReverse mergerQuestion 5 of 40 6. What characterizes a reverse merger?A larger, listed company acquires a smaller, unlisted oneUnrelated businesses mergingA company acquiring its competitorTwo companies combining in the same sectorQuestion 6 of 40 7. What is an acquisition in business terms?Splitting a company into divisionsA merger of two companiesThe purchase of a controlling interest in another firmSelling off business unitsQuestion 7 of 40 8. How can a company acquire shares through an open offer?By buying shares directly from the companyBy purchasing shares through confidential agreementsBy offering to buy shares from the general body of shareholdersBy obtaining shares through a reverse mergerQuestion 8 of 40 9. What happens when a corporation purchases a division from another company?The selling company takes over the liabilities of the divisionThe acquiring company assumes responsibility for the liabilities of the divisionThe selling company retains control of the division's assetsThe acquiring company only takes over a fraction of assets and liabilitiesQuestion 9 of 40 10. How is a takeover different from a merger?Takeover involves merging without shareholder consentTakeover doesn't transfer assets and obligationsTakeover refers to amicable agreementsTakeover is a friendly agreement between companiesQuestion 10 of 40 11. What defines a Leveraged Buyout (LBO)?Using borrowed funds to finance an acquisitionAcquiring a company without using debtSelling company assets to finance an acquisitionA merger between two private equity firmsQuestion 11 of 40 12. How are target company assets used in a Leveraged Buyout (LBO)?As collateral for borrowed fundsSold to finance the acquisitionTransferred to the acquiring companyDistributed among existing shareholdersQuestion 12 of 40 13. Which of these is a potential benefit of mergers and acquisitions?Increased competitionLimited market expansionReduced profitabilityImproved competitive positionQuestion 13 of 40 14. What does a company aim for in a diversification strategy through mergers?Limiting the variety of products/servicesReducing market shareExpanding into unrelated marketsFocusing on core competenciesQuestion 14 of 40 15. How does vertical integration benefit companies in a merger?Reducing operational efficiencyLimiting access to new technologiesImproving supply chain controlIncreasing market competitionQuestion 15 of 40 16. What is a potential outcome of accessing new technologies through mergers?Reduced market shareLimited market expansionImproved market competitionDecreased shareholder valueQuestion 16 of 40 17. How does geographic expansion benefit companies involved in mergers?Restricting market reachReducing market exposureLimiting talent acquisitionIncreasing market presenceQuestion 17 of 40 18. What is one of the reasons for anti-takeover defenses in companies?Encouraging mergersDeterring potential biddersFacilitating market expansionPromoting shareholder valueQuestion 18 of 40 19. Which defense mechanism involves granting existing shareholders the right to buy stocks on favorable terms?Pacman defensePoison pillGolden parachuteStaggered boardQuestion 19 of 40 20. What strategy involves the target company initiating legal action against a potential bidder?GreenmailLitigationPacman defensePoison putQuestion 20 of 40 21. What does divestiture involve?Acquiring another company's divisionsSelling a company's divisions or assetsMerging with unrelated businessesJoint venture formationQuestion 21 of 40 22. What occurs in a spin-off?A new company is formed by separating a business unitA company sells a portion of its assetsA parent company offers a subsidiary through an IPOA company forms a joint ventureQuestion 22 of 40 23. Which divestiture type involves a partial sale of a company's assets through an IPO?Equity carve-outSell-offJoint ventureAsset saleQuestion 23 of 40 24. What is a characteristic of an asset sale divestiture?Transferring ownership of the entire entitySelling specific assets or divisionsOffering a subsidiary through an IPOMerging with a new businessQuestion 24 of 40 25. When might a company consider a demerger?When focusing on core competenciesTo expand into unrelated marketsTo increase operational efficiencyWhen transferring ownership to a subsidiaryQuestion 25 of 40 26. Which of the following is a reason for a demerger?Management of an excessively large companyFocusing on diverse market segmentsAcquiring immediate funds for expansionDiversification into unrelated marketsQuestion 26 of 40 27. What happens in a joint venture?A company sells a portion of its assetsTwo companies form a new entityA new company is formed by separating a business unitA company sells its divisionsQuestion 27 of 40 28. What type of divestiture involves selling a company's divisions to another firm?Carve-outJoint ventureSell-offDemergerQuestion 28 of 40 29. What is the primary aim of an equity carve-out?Complete sale of subsidiary ownershipMaintaining complete control over a subsidiarySelling a majority stake in a subsidiarySelling a minority stake in a subsidiaryQuestion 29 of 40 30. In which divestiture type does a company retain ownership of the remaining stake after an IPO?Carve-outJoint ventureSpin-offEquity carve-outQuestion 30 of 40 31. What characterizes a conglomerate merger?Companies with the same market sector merge.Unrelated businesses merge.Companies with buyer-seller relationships merge.Competitor companies merge.Question 31 of 40 32. When does a vertical merger typically occur?When companies in different market sectors merge.When buyer-seller relationships merge.When competing companies merge.When companies merge with the same product line.Question 32 of 40 33. What distinguishes a reverse merger?A larger, unlisted company acquires a smaller, listed one.Unrelated businesses merge.Two companies in the same sector merge.A smaller, unlisted company acquires a larger, listed one.Question 33 of 40 34. How does a Leveraged Buyout (LBO) finance the acquisition?By using only equity capitalBy utilizing funds from shareholdersBy borrowing a significant amount of fundsBy selling off the company's assetsQuestion 34 of 40 35. What is the primary aim of anti-takeover defenses in companies?To encourage potential biddersTo deter potential biddersTo expedite mergersTo facilitate acquisitionsQuestion 35 of 40 36. Which defense mechanism involves shareholders' rights to buy stocks under favorable terms?Pacman defensePoison pillGolden parachuteStaggered boardQuestion 36 of 40 37. In what scenario might a divestiture be considered by a company?When focusing on diversificationWhen looking to increase market shareWhen aiming to manage an excessively large companyWhen aiming for vertical integrationQuestion 37 of 40 38. What defines a spin-off in business terms?Selling a company's divisionsCreating a new independent companySelling assets through an IPOForming a joint ventureQuestion 38 of 40 39. What occurs in a sell-off divestiture?Selling a portion of a subsidiary through an IPOSelling specific assets or divisionsSelling a division to another firmSelling a company's entire assetsQuestion 39 of 40 40. What defines a demerger?A company sells a portion of its assetsA business unit forms a new companyTransferring an undertaking to another companySplitting a company's operations into unrelated marketsQuestion 40 of 40 Loading...
