M&A Ethics Quiz

What best defines a merger?

• A company acquiring another

• Two firms fusing voluntarily as equals

• A hostile takeover

• A sale of assets

What is the primary goal of an acquisition?

• Avoiding taxes

• Gaining control of another company's operations

• Reducing the number of competitors

• Rebranding

Which of the following is NOT typically a concern in M&A ethics?

• Corporate branding

• Employee treatment

• Transparency

• Shareholder interests

What is an example of unethical M&A behavior?

• Offering stock options

• Disclosing liabilities

• Hiding financial data

• Retaining creative leadership

Which scandal is cited as an example of unethical financial reporting in M&A?

• WorldCom

• Facebook

• Enron

• Autonomy

Ethical companies should communicate with employees during M&A to:

• Avoid public backlash

• Reduce costs

• Build trust and fairness

• Satisfy legal requirements only

When Disney acquired Pixar, what ethical practice did they demonstrate?

• Job outsourcing

• Cutting salaries

• Retaining leadership and job security

• Eliminating duplicate departments

What term refers to excessive compensation for executives during M&A?

• Greenmail

• Golden handshake

• Golden parachutes

• Silver lining

The HP-Autonomy deal is an example of:

• Positive shareholder return

• Financial transparency

• Misrepresentation leading to shareholder harm

• Fair valuation

Which regulatory bodies are mentioned for ensuring competition in M&A?

• FBI and SEC

• FTC and EU Commission

• WTO and IMF

• FDA and WHO