WorksheetsMergers and Acquisitions
Total questions: 10
Worksheet time: 5mins
Which of the following is not the reason for acquisition?
Increase market power
Overcoming entry barriers
Increase diversification
Building up brand image
An acquisition can reduce the negative effect of an intense rivalry on a firm's financial performance
True
False
An acquiring firm can gain capabilities that the firm does not currently possess such as in term of technology capabilities, expertise and reduced inertia.
True
False
Which of the following is a problem to achieve successful acquisition?
Small organization
Very little diversification
Acceptable debts
Lack of due diligence
The main purpose of acquisition is to create synergy.
True
False
When mergers and acquisition occurred, restructuring process will also take place.
True
False
One of the restructuring process after mergers and acquisition is called downscoping. What is downscoping
Reduction of employees
Sell firms' assets to others
Eliminating unrelated businesses
Adding more new products
When two firms agree to integrate their operations called ________
Merger
Acquisition
Firm buys a controlling or 100% interest in another firm called _______
Merger
Acquisition
Internal development of new product often considered high risk and become the solid reason for mergers and acquisition.
True
False
