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WorksheetsMMS Fin CVMA
Total questions: 20
Worksheet time: 40mins
Identify the incorrect pair
Horizontal Merger – Economies of Scale
Vertical Merger – Entry into new market
Conglomerate Merger – Business Risk lowering
Concentric Merger – Acquisition of customer for products
Which one of the following explains the correctly the type of merger
Vertical Merger- Just In Time
Concentric Merger – Companies in same Value chain
Conglomerate Merger – Companies producing same products
Horizontal Merger – Diversification of risk
Which of the following is NOT used payment mode in M&A?
EPS method
Synergy driven method
Market Price method
Independent appraiser method
In M&A, which is NOT considered as a mistake of the Acquiring company
Striving for Bigness
Straying too far afield
Integration of both the companies
Overpaying
Which pair is correct
Holding Company = Strategic Alliances
Merger = Amalgamation
MBI = MBO
Buy Back of Shares = Equity Carve out
Which is the section used to denote amalgamation in India
Section 1 (2A)
Section 2 (1A)
Section 1 (2.1 A)
Section 2 (1 AB)
What can be considered as a benefit of M&A
Delisting
Synergy
Venture capital
Non-compliances
Find the correct sequence as an instrument of Expansion Technique: Divestment Technique: Other Technique
Merger: Franchisee: Reverse Merger
Amalgamation: MBO: Reverse Merger
Slump Sale: Liquidation: Equity Carve Out
Liquidation: MBI: MBO
Which of the following is NOT a Divestment Technique
Demerger
Hive off
Share Repurchase
MBO
Identify the INCORRECT pair
Financial Leverage: LBO
Venture Capital: MBI
Holding Company: Subsidiaries
Residual Claim payment: Demerger
There are two companies namely company A and company T. The financial information regarding both companies are given below:
Comp A Comp T
PAT 25 L 9 L
Mkt Price 21 14
Shares 5 L 3 L
How many shares will be issued to the shareholder of Company T Ltd, if merger happens on the basis of EPS (in L)
1.20
1.50
1.80
2.00
Refer Q 11, How many shares will be issued to the shareholder of Company T Ltd, if merger happens on the basis of EPS (in L)
1.20
1.50
1.80
2.00
which of the following pairs are INCORRECT
Bear Hug – Tender Offer
Standstill Agreement -Green mails
Street Sweep – Holding Company
Pac Man Defence – White Knight
Which of the following is not an example of horizontal merger
Lipton India Ltd – Brooke Bond Limited
The Sangli Bank - ICICI
Cairn India Ltd – Sterlite
L & T – Voltas India Limited
The promoters of the company sell the company to the existing management of the company. The process is known as
Management Buy Out
Management Buy In
Leveraged Buy Out
Management Sell Out
If a company (A) has 10 lakhs issued shares and has market price of Rs 100 while another company (T) has 5 lakh shares issued with current market price of Rs 50. Post-merger, the combined value of the company will be 15 Cr. What will be the value of Synergy? ( in Cr)
2.0
2.5
3.0
3.5
Which of the following is not a limitation of Book Value method of Mode of payment in M&A
Net worth is divided with number of shares
It is simple and easy to calculate
It is based upon historical cost of assets
Good for business with mostly liquid assets
Corporate Restructuring include
Financial / Technological / Managerial changes
Political / Technological / R & D changes
Technological / Spiritual / Financial changes
Political / Motivational / Spiritual changes
In the method of M&A though absorption
Both companies remain independent
One company loses its identity
Both companies remain listed in the exchange
Shareholders of both companies remains separate
Which is not a benefit always available to Acquiring company (comp A)
Reduction in Cost
Economies of Scale
Tax benefits
End of Price Cutting
