Deck 2: Mergers and Acquisitions: Part A

Question 1

__________ takes place when a profit-making parent company merges into a loss-making subsidiary company.

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

Answer 1

Reverse Merger

Question 2

__________ takeover is the takeover which is affected with the consent of target company's executives and management.

A)Compulsory
B)Hostile
C)Friendly
D)Bailout

Answer 2

Friendly

Question 3

A _________ offer is required to be made within 15 business days of the original tender offer.

A)Voluntary
B)Conditional
C)Competing
D)Mandatory Tender

Answer 3

Competing

Question 4

The Indian ____________ contains several provisions that deal with the taxation of different categories of mergers and acquisitions.

A)Competition Act, 2002
B)Income Tax Act, 1961
C)Companies Act, 2013
D)All of the above

Question 5

Global takeovers are __________ processes.

A)Simple
B)Complex
C)Mixed
D)Both (a) and (b)

Question 6

___________ is a disjoining or a separation of one or more units of a company to form a new company independent from the original one.

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

Question 7

__________ attempts by target managers to defeat outstanding takeover proposals are overt forms of takeover defences.

A)Takeover Defences
B)Hostile Takeover
C)Bailout Takeover
D)Friendly Takeover

Question 8

The main reason for _________ takeover is to attain monopoly.

A)Friendly
B)Cross Border
C)Hostile
D)Compulsory

Question 9

Under _________ Strategy, the target company attempts to purchase the shares of the raider company.

A)The Crown Jewel
B)The Packman Defence
C)Golden Parachutes
D)Buyback

Question 10

The _______ deals with the power of a company to acquire shares of another company.

A)Companies Act, 2013
B)Competition Act, 2002
C)SEBI Regulation
D)All of the above

Question 11

The divestiture of major operating unit most conveted by the bidder- commonly known as the ____________

A)Poison Pill
B)Crown Jewel
C)Packman
D)Golden Parachutes

Question 12

The purchase of the business of an enterprise by another enterprise is known as ________

A)Merger
B)Acquisition
C)Buyout
D)Disinvestment

Question 13

The defence mechanism being used is anti- takeover amendments to the company's or articles of association are known as ________

A)Shark repellents
B)Packman
C)Poison Pill
D)Crown Jewel

Question 14

When an acquirer company takeovers the control over the other company against the wishes of targeted company's management considered as ____________

A)Merger
B)Friendly Takeover
C)Hostile Takeover
D)Demerger

Question 15

_____________ takeovers are substantial acquisition of shares in a financially weak company not being a sick industrial company.

A)Bailout
B)Partial
C)Resistance
D)Hostile

Question 16

________ means an acquirer takes over the control of the target company.

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

Question 17

The Indian Stamp Act, 1899 provides for stamp duty on transfer/ issue of shares at the rate of ______

A)0.50%
B)0.25%
C)0.01%
D)0.05%

Question 18

___________ helps to widen the growth opportunities for the company.

A)Synergies
B)Tax Advantage
C)Disinvestment
D)Diversification

Question 19

_________ method is used in accounting for amalgamations in the nature of purchase.

A)Pooling of interest
B)Taxation Aspects
C)Purchase
D)Goodwill

Question 20

The note of every application filed with the Tribunal has to be given to the _________

A)Parliament
B)Central Government
C)State Government
D)Chairman

Question 21

The scheme of merger and amalgamation is required to approved by ___________, before it is filed with the High court.

A)Shareholders
B)Director
C)Government
D)SEBI

Question 22

A _______ offer may be made by an existing shareholder or an acquirer who holds no shares in the target company.

A)Voluntary
B)Conditional
C)Competing
D)Mandatory Tender

Question 23

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

A)Golden Parachutes
B)The Packman Defence
C)Poison Pills
D)The Crown Jewel

Question 24

Permission of ______ is required for the issue of any security to a person resident outside India.

A)RBI
B)SEBI
C)Government
D)Parliament

Question 25

_________ takeover is the takeover which is affected with the consent of target's company executives and management.

A)Hostile
B)Friendly
C)Compulsory
D)Cross Border