Deck 6: Mergers, Acquisitions, and Buybacks: Understanding Corporate Growth Strategies

Question 1

----------growth provides an organisation with an aim of achieving accelerated or increased growth through mergers, amalgamation ect.

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

Answer 1

Unorganised

Question 2

A -------- merger is a merger of business firm engaged into same line of business.

A)horizontal
B)vertical
C)conglomerate
D)market extention

Answer 2

horizontal

Question 3

A ---------- merger is a merger of business firm engaged in different stages of production in an industry.

A)horizontal
B)Vertical
C)Conglomerate
D)Market extention

Answer 3

Vertical

Question 4

A ------------ is a merger of business firm who are engaged in unrelated business.

A)horizontal
B)Vertical
C)Conglomerate
D)Market extention

Question 5

The acquirer must have or needs to purchase more than -------% of the paid up equity capital of other company which the acquirer intended to overtake.

A)50
B)75
C)25
D)51

Question 6

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

A)SEBI
B)RBI
C)ROC
D)SBI

Question 7

------------------- strategy involves a significant change in the financial structure of the business firm.

A)Financial Restructuring
B)Financial Planning
C)Financial Management
D)Financial Services

Question 8

In stock swap merger the holder of target company's stock receive --------- of the acquiring company's stock.

A)Shares
B)Debentures
C)Deposits
D)Bonds

Question 9

------------- are commercial loans raised by eligible resident entities from reorganised nonresident entities.

A)External commercial borrowings
B)Commercial bills
C)Treasury bills
D)Credit note

Question 10

A---------- is the acquisition of a company or division of another company, financed with the substantial portion of borrowed funds.

A)Leveraged buyout
B)Rehabilitation finance
C)Corporate finance
D)Institutional finance

Question 11

When sick industries gets merged with healthy units with financial package is termed as- -----

A)Financial rehabilitation
B)LBO
C)ECBs
D)Corporate finance

Question 12

The ---------is prepared by insolvency resulation applicant and submitted to insolvency professional who seek the consent of committee of creditors.

A)Insolvency resulation plan
B)Rehabilitation plan
C)Insolvency report
D)Resulation draft

Question 13

A ---------- is a financial transaction in which a company is purchased with a combination of equity and debt.

A)Leveraged buyout
B)Rehabilitation finance
C)Borrowed finance
D)Corporate finance

Question 14

In an------------------, the incumbent management team, acquires a sizeable portion of shares of the company.

A)MBO
B)LBO
C)MBI
D)MBS

Question 15

An ---------in which an external management team acquires the shares.

A)MBO
B)LBO
C)MBI
D)MBS

Question 16

A---------- buyout is a form of leveraged buyout where both the buyer and the seller are private equity firms.

A)Primary
B)Secondary
C)Tertiary
D)Management buyout

Question 17

If a company that was acquired in a secondary buyout get sold to another financial sponsor is called a ----------- buyout.

A)Primary
B)Secondary
C)Tertiary
D)Management buyout

Question 18

For a company, a ----------- is a process by which restructuring takesplace and surplus cash is returned to shareholders.

A)Capital reorganisation
B)Capital appreciation
C)Capital financing
D)Capital depreciation

Question 19

------------- is a corporate action in which a company buy back its shares from the existing shareholders usually at a price higher than market price.

A)Buy -Back
B)Free Reserve
C)Bonus issue
D)Forfeiting

Question 20

Before the buyback of shares, the company shall file with the Registrar of Companies a letter of offer in e-form --------.

A)SH-8
B)SH-9
C)SH-10
D)SH-11

Question 21

The company shall file with the Registrar of Companies, along with the letter of offer, and declaration of solvency in e-form --------------.

A)SH-8
B)SH-9
C)SH-10
D)SH-11

Question 22

A-------------- is a type of corporate action in which an acquiring company makes an offer to the target company's shareholders to buy the target company's shares to gain control of the business.

A)Takeover bid
B)Merger bid
C)Finance bid
D)Invitation bid

Question 23

The company shall maintain a register of buyback for shares and other securities in form no.------------- at the registeredoffice of the company.

A)SH-8
B)SH-9
C)SH-10
D)SH-11

Question 24

The return of buyback shall be filed with the Registrar in form no. -----------

A)SH-8
B)SH-9
C)SH-10
D)SH-11

Question 25

----------------of the company shall contain on enabling provision for buyback of shares.

A)Article of Association
B)Memorandum of Association
C)Prospectus
D)Offer document