6971550
Descripción
Test por Strategy IO, actualizado hace más de 1 año
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Creado por Strategy IO
hace alrededor de 8 años
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Pregunta 1
Pregunta
A firm engages in a(n) ________ when it purchases a second firm.
Respuesta
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acquisition
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joint venture
-
strategic alliance
-
equity alliance
Pregunta 2
Pregunta
When one firm acquires a(n) ________ of another firm, it has acquired enough of that firm's assets so that the acquiring firm is able to make all the management and strategic decisions in the target firm.
Respuesta
-
market stake
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equity share
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controlling share
-
equity stake
Pregunta 3
Pregunta
A(n) ________ acquisition occurs when the management of a target firm wants to be acquired.
Respuesta
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hostile
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admirable
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strategic
-
friendly
Pregunta 4
Pregunta
When a firm has not sold shares on the public stock market, it is known as
Respuesta
-
closely held.
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privately held.
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publicly traded.
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a small cap stock.
Pregunta 5
Pregunta
The difference between the current market price of a target firm's shares and the price a potential acquirer offers to pay for those shares is known as an
Respuesta
-
acquisition premium.
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acquisition discount.
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acquisition margin.
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acquisition price.
Pregunta 6
Pregunta
When Sears and Kmart, two retail firms of relatively equal size in the United States, agreed to combine their assets, this was an example of a(n)
Respuesta
-
joint venture.
-
acquisition.
-
merger.
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equity agreement.
Pregunta 7
Pregunta
The price of each of a firm's shares multiplied by the number of shares outstanding represents the firm's
Respuesta
-
total equity base.
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current market value.
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total market share.
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current market share.
Pregunta 8
Pregunta
In an unrelated acquisition, if 5 firms are interested in acquiring a firm and each of the bidding firms had a current market value of $30,000 while the current market value of the target firm is $20,000, this acquisition is likely to generate economic profits of ________ for the acquiring firm.
Respuesta
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$10,000
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$20,000
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$50,000
-
$0.00
Pregunta 9
Pregunta
If an electronics manufacturer were to acquire a chain of retail electronic stores to sell its products, this would be an example of a ________ merger.
Respuesta
-
vertical
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horizontal
-
market extension
-
product extension
Pregunta 10
Pregunta
If eBay were to acquire a smaller online auction company, this would be an example of a ________ merger.
Respuesta
-
conglomerate
-
vertical
-
market extension
-
horizontal
Pregunta 11
Pregunta
In a ________ merger, firms acquire complementary products through their merger and acquisition activities.
Respuesta
-
vertical
-
market extension
-
product extension
-
horizontal
Pregunta 12
Pregunta
When eBay acquired Baaze.com, an Indian auction firm, in order to enter the Indian online auction market, this was an example of a ________ merger.
Respuesta
-
product extension
-
market extension
-
conglomerate
-
vertical
Pregunta 13
Pregunta
If there are no vertical, horizontal, product extension, or market extension links between firms, the FTC defines the merger or acquisition activity between firms as a ________ merger.
Respuesta
-
conglomerate
-
vertical
-
horizontal
-
product extension
Pregunta 14
Pregunta
________ economies are scale economies that occur when the physical processes inside a firm are altered so that the same amounts of input produce a higher quantity of outputs.
Respuesta
-
Pecuniary
-
Diversification
-
Technical
-
Vertical
Pregunta 15
Pregunta
Which of the following is a source of diversification economies?
Respuesta
-
marketing
-
production
-
scheduling
-
portfolio management
Pregunta 16
Pregunta
________ economies are achieved by the ability of firms to dictate prices by exerting market power.
Respuesta
-
Pecuniary
-
Technical
-
Diversification
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Production
Pregunta 17
Pregunta
________ economies are achieved by improving a firm's performance relative to its risk attributes or lowering its risk attributes relative to its performance.
Respuesta
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Technical
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Diversification
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Pecuniary
-
Market
Pregunta 18
Pregunta
Which of the following is a financial motivation for why bidding firms might want to engage in merger and acquisition strategies?
Respuesta
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to increase leverage opportunities
-
to capture economies of scale
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to adopt more efficient production or organizational technology
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to engage in vertical integration
Pregunta 19
Pregunta
Which one of the following is not one of the reasons that Jensen and Ruback listed as to why bidding firms might want to engage in merger and acquisition strategies?
Respuesta
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to reduce production or distribution costs
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to gain market power in product markets
-
to expand individual managers' power within an organization
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to eliminate inefficient target management
Pregunta 20
Pregunta
In a related acquisition, if there is one target firm and ten bidding firms, and the value of each of the bidding firms as a stand-alone entity is $50,000 and the value of the target firm as a stand-alone entity is $30,000, the market value of the combined entity will be
Respuesta
-
$0.00.
-
less than $80,000.
-
more than $80,000.
-
$80,000.
Pregunta 21
Pregunta
Wealthy individuals who provide capital to entrepreneurs to help them grow their businesses are known as
Respuesta
-
business angels.
-
venture capitalists.
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stockholders
-
CEOs.
Pregunta 22
Pregunta
________ firms typically raise money from numerous smaller investors, which they then invest in a portfolio of entrepreneurial firms.
Respuesta
-
Business angel
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Venture capital
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Closely held
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Private equity
Pregunta 23
Pregunta
In a(n) ________, a firm, typically working with an investment banker, sells its equity to the public at large.
Respuesta
-
FTC
-
merger
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IPO
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acquisition
Pregunta 24
Pregunta
Entrepreneurs must rely on capital generated from their ongoing operations or ________ and debt capital provided by banks.
Respuesta
-
initial public offering
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retained earnings
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venture capital firms
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operating budgets
Pregunta 25
Pregunta
Managers of bidding firms continue to engage in merger or acquisition strategies even though they usually do not generate profits for bidding firms in order to
Respuesta
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ensure survival.
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improve firm reputation.
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reduce agency problems.
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reduce managerial hubris.
Pregunta 26
Pregunta
Which of the following actions should bidding firm managers take to help earn superior performance in an acquisition strategy?
Respuesta
-
Share information with other bidders.
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Delay the closing of the deal.
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Avoid winning bidding wars.
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Operate in competitive acquisition markets.
Pregunta 27
Pregunta
A thinly traded market is a market where
Respuesta
-
there are only a small number of buyers and sellers,where information about opportunities in this market is not widely know, and where interests besides purely maximizing the value of a firm can be important.
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many firms are implementing acquisition strategies.
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information about opportunities in this market is widely known.
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the only important interest is to maximize the value of a firm.
Pregunta 28
Pregunta
To ensure that the owners of target firms appropriate whatever value is created by a merger or acquisition, managers in these target firms should
Respuesta
-
create a thinly traded market for their firm.
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seek information from bidders.
-
close the acquisition deal quickly.
-
limit the number of bidders involved in the bidding competition.
Pregunta 29
Pregunta
________ is (are) a maneuver in which a target firm's management purchases any of the target firm's stock owned by a bidder and does so for a price that is greater than the current market value of that stock.
Respuesta
-
Standstill agreements
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Poison pills
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Shark repellents
-
Greenmail
Pregunta 30
Pregunta
Firms using ________ fend off an acquisition by taking over the firm or firms bidding for them.
Respuesta
-
shark repellents
-
a crown jewel sale
-
the Pac Man defense
-
a golden parachute
Pregunta 31
Pregunta
A ________ is a compensation arrangement between a firm and its senior management team that promises these individuals substantial cash payment if their firm is acquired and they lose their jobs in the process.
Respuesta
-
white knight agreement
-
greenmail agreement
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shark repellent
-
golden parachute
Pregunta 32
Pregunta
Mergers and acquisitions used to create diversification strategies should be managed through the
Respuesta
-
M-form structure.
-
functional structure.
-
U-form structure.
-
matrix structure.
Pregunta 33
Pregunta
The most significant challenge in integrating bidding and target firms has to do with
Respuesta
-
accounting differences.
-
cultural differences.
-
operational differences.
-
logistic differences.
Pregunta 34
Pregunta
A ________ is another bidding firm that agrees to acquire a particular target in the place of the original bidding firm.
Respuesta
-
golden parachute
-
greenmail
-
white knight
-
crown jewel
Pregunta 35
Pregunta
________ include a variety of relatively minor corporate governance changes that, in principle, are supposed to make it more difficult to acquire a target firm.
Respuesta
-
Shark repellents
-
White knights
-
Greenmail
-
Poison pills
Pregunta 36
Pregunta
Supermajority voting rules are an example of a
Respuesta
-
poison pill.
-
white knight.
-
golden parachute.
-
shark repellent.
Pregunta 37
Pregunta
________ does not affect the wealth of target firm equity holders.
Respuesta
-
Blue Man defense
-
Pac Man defense
-
Golden parachute
-
Silver parachute
Pregunta 38
Pregunta
________ is an example of an ineffective and inconsequential response with the idea that sometimes a bidding firm is interested in just a few of the businesses currently being operated by the target firm.
Respuesta
-
A Pac Man defense
-
A Blue Man defense
-
A crown jewel sale
-
A golden parachute defense
Pregunta 39
Pregunta
If P&G's bid for Gillette was invited by Gillette's management, this would be an example of a
Respuesta
-
hostile acquisition.
-
joint venture.
-
friendly acquisition.
-
merger.
Pregunta 40
Pregunta
If Gillette's total market value on the day the deal was announced was $48.30 billion, P&G's $57 billion offer would represent a(n)
Respuesta
-
18% acquisition premium.
-
82% acquisition discount.
-
82% acquisition premium.
-
18% acquisition discount.
Pregunta 41
Pregunta
Since both P&G and Gillette are consumer products firms, this acquisition is best described as a
Respuesta
-
vertical merger.
-
horizontal merger.
-
market extension merger.
-
conglomerate merger.
Pregunta 42
Pregunta
P&G's acquisition of Wella in 2003 is an example of a
Respuesta
-
market extension merger.
-
conglomerate merger.
-
vertical merger.
-
product extension merger.
Pregunta 43
Pregunta
P&G's purchase of AG-Hutchison Ltd in 2004 is an example of a
Respuesta
-
conglomerate merger.
-
vertical merger.
-
market extension merger.
-
conglomerate acquisition.
Pregunta 44
Pregunta
If one of the reasons P&G acquired Gillette was to gain greater market power in key industries, this would be an example of ________ economies.
Respuesta
-
technical
-
pecuniary
-
diversification
-
vertical
Pregunta 45
Pregunta
If P&G wanted to increase the probability that it would be able to earn superior economic performance from its acquisition of Gillette, P&G should
Respuesta
-
share information about Gillette with other potential bidders.
-
share information about strategic fit potential between P&G and Gillette with Gillette.
-
wait to submit its bid for Gillette until there are multiple interested bidders.
-
close the acquisition deal as quickly as possible.
Pregunta 46
Pregunta
If Gillette's managers wanted to maximize the value that Gillette received from its acquisition by P&G, they should
Respuesta
-
seek information from P&G about the value that P&G will receive from its acquisition of Gillette.
-
not engage in negotiations with any bidder but P&G.
-
close the acquisition as quickly as possible.
-
stop the acquisition.
Pregunta 47
Pregunta
If P&G's acquisition of Wella had been delayed because it had to overcome a stipulation in Wella's corporate bylaws requiring that more than 50% of Wella's board of directors had to approve the takeover, this would be an example of
Respuesta
-
the Pac Man defense.
-
a poison pill.
-
greenmail.
-
a shark repellent.
Pregunta 48
Pregunta
The most significant challenge P&G is likely to face in integrating each of the acquired companies into P&G's operations is likely to be ________ differences between P&G and each of the companies.
Respuesta
-
logistical
-
cultural
-
operational
-
distribution
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