Question 1

Justification for merger and amalgamation do not include ------------&#10;A)to achieve synergy&#10;B)to enter into new market&#10;C)to increase risk&#10;D)to gain economies of scale

Accepted Answer

Mergers and amalgamations are typically pursued to achieve benefits such as synergy, entering new markets, and gaining economies of scale, rather than to increase risk. Increasing risk is generally not a desired outcome of such corporate strategies.

Question 2

Managerial motive for merger and amalgamation do not related to -------------&#10;A)Dividend&#10;B)Power&#10;C)Job security&#10;D)Emoluments

Accepted Answer

Managerial motives for merger and amalgamation typically relate to factors such as power, job security, and emoluments, rather than directly influencing dividend policies. Dividends are more directly related to the financial performance and policies of the company rather than the managerial motives behind mergers and amalgamations.

Question 3

The three broad approaches to company valuation do not include ------------.&#10;A)Stock market valuation&#10;B)Assets valuation&#10;C)Inventory valuation&#10;D)Future earnings valuation

Accepted Answer

Inventory valuation is not a broad approach to company valuation; it is a method used to value a company's inventory. The three broad approaches to company valuation typically include assets valuation, future earnings valuation, and market valuation (which can involve stock market valuation).

Question 4

----------- in his book of 'Stategic Management 'has identified the strategy alternatives into four board strategies.&#10;A)William F. Glueck&#10;B)Henry Fayol&#10;C)Peter Drucker&#10;D)James Stonner

Accepted Answer

William F. Glueck, in his book on Strategic Management, categorized strategy alternatives into four broad strategies, making a significant contribution to the field of strategic management and planning.

Question 5

Merger or takeover may be provided for as a part of insolvency resulation plan under the Insolvency and Bankruptcy Code, -----------&#10;A)2000&#10;B)2012&#10;C)2014&#10;D)2016

Accepted Answer

The Insolvency and Bankruptcy Code that allows for mergers or takeovers as part of an insolvency resolution plan was enacted in 2016.

Question 6

--------------does not result in a expansion of the firm.&#10;A)Joint venture&#10;B)Merger&#10;C)Divestiture&#10;D)Acquisition

Accepted Answer

Divestiture involves a company selling off a portion of its assets or a division, which typically leads to a reduction in the size of the firm rather than an expansion. Joint ventures, mergers, and acquisitions are strategies aimed at growth or expansion.

Question 7

------------- does not involve a change in the ownership structure.&#10;A)Proxy contest&#10;B)Share repurchase&#10;C)LBO&#10;D)Going Private

Accepted Answer

The answer of ------------- does not involve a change in...

Question 8

-------------is referred as 'as going private transaction 'initiate by the incumbent management.&#10;A)Management buyout&#10;B)Leveraged cash out&#10;C)Management Buy-in&#10;D)Leveraged recapitalisation

Accepted Answer

A Management Buyout (MBO) is referred to as a 'going private transaction' initiated by the incumbent management. In an MBO, the company's existing managers acquire a significant part or all of the company, often with the help of external financiers. This process effectively takes the company private, removing it from public stock exchanges.

Question 9

----------- forms one economic unit from two or more units is called ----------&#10;A)Joint Ventures&#10;B)Merger&#10;C)Corporate control&#10;D)Divestiture

Accepted Answer

A merger is the process by which two or more companies combine to form a single larger company, effectively creating one economic unit from the previously separate entities.

Question 10

Which of the following activities are commonly associated with takeover.&#10;A)The acquisition of assets&#10;B)Management buyout&#10;C)Leveraged buyout&#10;D)All the above

Accepted Answer

All the options listed (A: The acquisition of assets, B: Management buyout, and C: Leveraged buyout) are activities commonly associated with takeovers. In a takeover, a company or group gains control over another company, and these activities are various strategies or methods through which control can be acquired or transferred.

Question 11

One of the most basic reason for a merger is --------&#10;A)Enhance revenue&#10;B)Increase competition&#10;C)Cost reduction&#10;D)Employee benefits

Accepted Answer

The answer of One of the most basic reason for...

Question 12

The ____________ process must involve a significant change in the management culture of the acquired business.&#10;A)Human Resource Management&#10;B)Post-Merger Integration&#10;C)General management integration&#10;D)Product and service development.

Accepted Answer

The answer of The ____________ process must involve a significant...

Question 13

__________ are sought with an aim to trying to control the products and services feed by the involved business.&#10;A)Post-Merger Integration&#10;B)Product and service development&#10;C)Merger and Acquisition&#10;D)Financial market value

Accepted Answer

The answer of __________ are sought with an aim to...

Question 14

Management involves the ___________ of resources.&#10;A)Utilisation&#10;B)Analysis&#10;C)Culture&#10;D)Net Profit

Accepted Answer

The answer of Management involves the ___________ of resources.&#10;A)Utilisation&#10;B)Analysis&#10;C)Culture&#10;D)Net Profit...

Deck 4: Mergers and Acquisitions: Part C