Mergers, Acquisitions, and Finance Quiz

Which of the following is not a type of merger?

• Horizontal

• Vertical

• Diagonal

• Conglomerate

In a merger, the acquiring company usually benefits through:

• Brand dilution

• Economies of scale

• Increased taxation

• Decreased market share

Due diligence in M&A is primarily done to:

• Finalize shareholding pattern

• Evaluate regulatory penalties

• Assess financial, legal, and operational risks

• Prepare merger notification to SEBI

Which financial metric is most commonly used to value a company in M&A?

• ROI

• Market Cap

• EV/EBITDA

• Net Working Capital

The role of merchant bankers in an M&A deal typically includes:

• Legal arbitration

• Advertising

• Valuation & negotiation

• Product development

Reverse merger refers to:

• A private company merging into a listed company

• Two private companies merging

• Listed company merging into a start-up

• Acquisition by a foreign company

SEBI mandates public disclosure in M&A deals exceeding:

• 10% stake

• 15% stake

• 25% stake

• 5% stake

Portfolio diversification helps in:

• Maximizing tax

• Reducing transaction cost

• Minimizing risk

• Eliminating returns

Which of the following is not a type of portfolio?

• Growth Portfolio

• Balanced Portfolio

• Value Portfolio

• Cost Portfolio

The risk-return trade-off is:

• A fixed relationship

• An inverse relationship

• A positive relationship

• Not related at all