Question 1

The following are motives for joint ventures except for:

Accepted Answer

A) Enhance research and development capabilities 
B) Gain access to key supplies 
C) Enhance distribution systems 
D) Enhance market share 
A) Enhance research and development capabilities 
B) Gain access to key supplies 
C) Enhance distribution systems 
D) Enhance market share D

Question 2

Research by Marciukaityte, Roskelley, and Wang found:

Accepted Answer

A) Positive announcement effects to the formation of alliances in the financial services industry 
B) Alliances in the financial services industry showed improvements in operating performance relative to the industry 
C) Alliance partners were more likely to enter into joint ventures or M&A with each other than randomly selected firms 
D) All of the above 
A) Positive announcement effects to the formation of alliances in the financial services industry 
B) Alliances in the financial services industry showed improvements in operating performance relative to the industry 
C) Alliance partners were more likely to enter into joint ventures or M&A with each other than randomly selected firms 
D) All of the above D

Question 3

Chan, Kensinger, Keown, and Martin found significant transfers of wealth from alliance partners.

Accepted Answer

A) True 
 B)False  False

Question 4

Enhancing R&D is a common reason why companies form joint ventures.

Accepted Answer

A) True 
 B)False

Question 5

Das, Sen, and Sengupta showed that technological alliances were associated with greater announcement returns than marketing alliances.

Accepted Answer

A) True 
 B)False

Question 6

Research shows that:

Accepted Answer

A) Techno?logical alliances were more common in high-growth sectors 
B) Marketing alliances were more common in mature industries 
C) Abnormal returns were negatively correlated with both the size of the alliance partners and their profitability 
D) Smaller and less proﬁtable companies seem to have more to gain from strategic alliances 
E) All of the above 
A) Techno?logical alliances were more common in high-growth sectors 
B) Marketing alliances were more common in mature industries 
C) Abnormal returns were negatively correlated with both the size of the alliance partners and their profitability 
D) Smaller and less proﬁtable companies seem to have more to gain from strategic alliances 
E) All of the above

Question 7

Woolridge and Snow's research on strategic investment decisions derived results that contradict those of McConnell and Nattell.

Accepted Answer

A) True 
 B)False

Question 8

The following can be a reason why joint ventures may not succeed:

Accepted Answer

A) Disagreement among participants 
B) Distrust among the participants 
C) Payment of too high a takeover premium 
D) All of the above 
E) Both a and b 
A) Disagreement among participants 
B) Distrust among the participants 
C) Payment of too high a takeover premium 
D) All of the above 
E) Both a and b

Question 9

McConnell and Nantell study showed that shareholders in companies entering into joint ventures enjoyed announcement period returns of -4%.

Accepted Answer

A) True 
 B)False

Question 10

Koh and Venkatraman found:

Accepted Answer

A) The positive shareholder wealth effects from joint venture announcements were greater for deals involving companies that were more related to each other 
B) The smaller joint venture partner benefited more than the larger one 
C) Contractual relationships yield greater benefits than joint ventures 
D) Both a and b 
E) Both b and c 
A) The positive shareholder wealth effects from joint venture announcements were greater for deals involving companies that were more related to each other 
B) The smaller joint venture partner benefited more than the larger one 
C) Contractual relationships yield greater benefits than joint ventures 
D) Both a and b 
E) Both b and c

Question 11

Strategic alliances are common in the pharmaceutical industry.

Accepted Answer

A) True 
 B)False

Question 12

One of the reasons why companies enter into strategic alliances is to:

Accepted Answer

A) Jointly benefit from specific knowledge resources of one of the partners 
B) Gain from a situation where a smaller partner possesses specific knowledge and expertise 
C) Totally avoid antitrust conflicts 
D) Both a and b 
E) Both a and c 
A) Jointly benefit from specific knowledge resources of one of the partners 
B) Gain from a situation where a smaller partner possesses specific knowledge and expertise 
C) Totally avoid antitrust conflicts 
D) Both a and b 
E) Both a and c

Question 13

Which tends to have the lowest commitment level?

Accepted Answer

A) Strategic alliances 
B) M&As 
C) Joint ventures 
D) Contractual agreements True or False 
A) Strategic alliances 
B) M&As 
C) Joint ventures 
D) Contractual agreements True or False

Question 14

Chan, Kensinger, Keown, and Martin found positive abnormal returns from strategic alliances.

Accepted Answer

A) True 
 B)False

Question 15

Johnson and Houston found that joint ventures were a favored alternative over contractual agreements when transaction costs were low.

Accepted Answer

A) True 
 B)False

Question 16

Vertical mergers in the United States are not subject to review by the Justice Department.

Accepted Answer

A) True 
 B)False

Question 17

Johnson and Houston found:

Accepted Answer

A) Positive announcement effects for horizontal joint ventures 
B) Positive announcement effects for vertical joint ventures 
C) Suppliers gained more than buyer in vertical deals 
D) All of the above 
E) None of the above 
A) Positive announcement effects for horizontal joint ventures 
B) Positive announcement effects for vertical joint ventures 
C) Suppliers gained more than buyer in vertical deals 
D) All of the above 
E) None of the above

Question 18

The following factors should govern the allocation of control rights in joint ventures except for:

Accepted Answer

A) The degree to which there may be an underinvestment of either party that could have an adverse effect on the success of the alliance 
B) The relative bargaining parties of the two partners. 
C) The extent to which one party may engage in opportunistic behavior, which can have an adverse effect on the outcomes 
D) All of the above 
E) Both a and c 
A) The degree to which there may be an underinvestment of either party that could have an adverse effect on the success of the alliance 
B) The relative bargaining parties of the two partners. 
C) The extent to which one party may engage in opportunistic behavior, which can have an adverse effect on the outcomes 
D) All of the above 
E) Both a and c

Question 19

Strategic alliances carry a lower probability of antitrust conflicts than M&As.

Accepted Answer

A) True 
 B)False

Question 20

Research shows joint ventures have all but the following:

Accepted Answer

A) Lower costs of completing deal than M&As 
B) Positive shareholder announcement effects 
C) Lower takeover premiums 
D) Lower likelihood of antitrust concerns 
A) Lower costs of completing deal than M&As 
B) Positive shareholder announcement effects 
C) Lower takeover premiums 
D) Lower likelihood of antitrust concerns

The following are motives for joint ventures except for:

Research by Marciukaityte, Roskelley, and Wang found:

Chan, Kensinger, Keown, and Martin found significant transfers of wealth from alliance partners.

Enhancing R&D is a common reason why companies form joint ventures.

Das, Sen, and Sengupta showed that technological alliances were associated with greater announcement returns than marketing alliances.

Research shows that:

Woolridge and Snow's research on strategic investment decisions derived results that contradict those of McConnell and Nattell.

The following can be a reason why joint ventures may not succeed:

McConnell and Nantell study showed that shareholders in companies entering into joint ventures enjoyed announcement period returns of -4%.

Koh and Venkatraman found:

Strategic alliances are common in the pharmaceutical industry.

One of the reasons why companies enter into strategic alliances is to:

Which tends to have the lowest commitment level?

Chan, Kensinger, Keown, and Martin found positive abnormal returns from strategic alliances.

Johnson and Houston found that joint ventures were a favored alternative over contractual agreements when transaction costs were low.

Vertical mergers in the United States are not subject to review by the Justice Department.

Johnson and Houston found:

The following factors should govern the allocation of control rights in joint ventures except for:

Strategic alliances carry a lower probability of antitrust conflicts than M&As.

Research shows joint ventures have all but the following:

Introduction

History of Mergers

Legal Framework

Merger Strategy

Antitakeover Measures

Takeover Tactics

Hedge Funds As Activist Investors

Going-Private Transactions and Leveraged Buyouts

The Private Equity Market

The Junk Bond and the Leveraged Loan Market and Stapled Financing

Corporate Restructuring

Restructuring in Bankruptcy

Corporate Governance

Valuation

Tax Issues in Mergers & Acquisitions

Filters

Exam 14: Joint Ventures and Strategic Alliances

The following are motives for joint ventures except for:

Research by Marciukaityte, Roskelley, and Wang found:

Chan, Kensinger, Keown, and Martin found significant transfers of wealth from alliance partners.

Enhancing R&D is a common reason why companies form joint ventures.

Das, Sen, and Sengupta showed that technological alliances were associated with greater announcement returns than marketing alliances.

Research shows that:

Woolridge and Snow's research on strategic investment decisions derived results that contradict those of McConnell and Nattell.

The following can be a reason why joint ventures may not succeed:

McConnell and Nantell study showed that shareholders in companies entering into joint ventures enjoyed announcement period returns of -4%.

Koh and Venkatraman found:

Strategic alliances are common in the pharmaceutical industry.

One of the reasons why companies enter into strategic alliances is to:

Which tends to have the lowest commitment level?

Chan, Kensinger, Keown, and Martin found positive abnormal returns from strategic alliances.

Johnson and Houston found that joint ventures were a favored alternative over contractual agreements when transaction costs were low.

Vertical mergers in the United States are not subject to review by the Justice Department.

Johnson and Houston found:

The following factors should govern the allocation of control rights in joint ventures except for:

Strategic alliances carry a lower probability of antitrust conflicts than M&As.

Research shows joint ventures have all but the following:

Introduction

History of Mergers

Legal Framework

Merger Strategy

Antitakeover Measures

Takeover Tactics

Hedge Funds As Activist Investors

Going-Private Transactions and Leveraged Buyouts

The Private Equity Market

The Junk Bond and the Leveraged Loan Market and Stapled Financing

Corporate Restructuring

Restructuring in Bankruptcy

Corporate Governance

Valuation

Tax Issues in Mergers & Acquisitions

Filters