Question 1

One of the integration issues relating to managing people in acquired company is:

Accepted Answer

A)  how to avoid 'experience loss' 
B)  how to allocate authority among managers 
C)  how to hire more people 
D)  how to design the job 
A)  how to avoid 'experience loss' 
B)  how to allocate authority among managers 
C)  how to hire more people 
D)  how to design the job A

Question 2

Experienced managers argue that it is the ___ between the partners that binds them together:

Accepted Answer

A)  legal agreement 
B)  relationship 
C)  financial interest 
D)  power structure 
A)  legal agreement 
B)  relationship 
C)  financial interest 
D)  power structure B

Question 3

Anslinger and Copeland's study of leveraged buyouts and diversified corporations showed that:

Accepted Answer

A)  they were classified as unrelated from a resource-based perspective 
B)  they produced high sharemarket returns from strategies of making acquisitions 
C)  they were classified as related from a product-market perspective 
D)  they produced low sharemarket returns from strategies of making acquisitions 
A)  they were classified as unrelated from a resource-based perspective 
B)  they produced high sharemarket returns from strategies of making acquisitions 
C)  they were classified as related from a product-market perspective 
D)  they produced low sharemarket returns from strategies of making acquisitions B

Question 4

Acquirers of publicly listed companies usually have to pay a premium in order to entice current shareholders.

Accepted Answer

A) True 
 B)False

Question 5

In 'absorption acquisitions',the acquirer needs to ensure that ___ at the target switch ___ and ___ as quickly as possible:

Accepted Answer

A)  employees, affiliation to, identify with the goals of objectives of the acquirer 
B)  management, loyalty, bonus schemes 
C)  plant and machinery, to preferred gas, electricity suppliers 
D)  shareholders, dividend preference, reinvest their distributions 
A)  employees, affiliation to, identify with the goals of objectives of the acquirer 
B)  management, loyalty, bonus schemes 
C)  plant and machinery, to preferred gas, electricity suppliers 
D)  shareholders, dividend preference, reinvest their distributions

Question 6

Identify the reasons for creating joint ventures.

Accepted Answer

Joint ventures can be used to achieve on

Question 7

According to Hubbard,Rice and Galvin,in many industries the winners will be the companies that:

Accepted Answer

A)  avoid joint ventures because they are difficult to manage 
B)  only form partnership with companies which know how to manage joint ventures successfully 
C)  outsource the management of joint venture 
D)  most quickly learn to manage joint venture effectively 
A)  avoid joint ventures because they are difficult to manage 
B)  only form partnership with companies which know how to manage joint ventures successfully 
C)  outsource the management of joint venture 
D)  most quickly learn to manage joint venture effectively

Question 8

The internationally used term 'M&A' recognises that there are few practical differences between mergers and acquisitions.

Accepted Answer

A) True 
 B)False

Question 9

Joint venture is NOT used to achieve which of the following purposes:

Accepted Answer

A)  strengthening the firm's existing business 
B)  taking the firm's existing products into new markets 
C)  obtaining new products that can be sold in the firm's existing markets 
D)  controlling the business of the partners 
A)  strengthening the firm's existing business 
B)  taking the firm's existing products into new markets 
C)  obtaining new products that can be sold in the firm's existing markets 
D)  controlling the business of the partners

Question 10

Hubbard,Rice and Galvin define a merger as:

Accepted Answer

A)  a mutually agreed consolidation under joint ownership of two independent entities 
B)  an exchange of shares between two related parties 
C)  the purchase of 66% of shares to obtain decision-making control over another organisation 
D)  an activity engaged in to stimulate stockmarket waves 
A)  a mutually agreed consolidation under joint ownership of two independent entities 
B)  an exchange of shares between two related parties 
C)  the purchase of 66% of shares to obtain decision-making control over another organisation 
D)  an activity engaged in to stimulate stockmarket waves

Question 11

The 'trust' between partners is largely determined by:

Accepted Answer

A)  financial power of partners 
B)  duration of relationship 
C)  dominance of one partner over others 
D)  market share of partners 
A)  financial power of partners 
B)  duration of relationship 
C)  dominance of one partner over others 
D)  market share of partners

Question 12

The objective of preservation acquisition is to preserve the green credentials of the acquired organisation.

Accepted Answer

A) True 
 B)False

Question 13

Hubbard,Rice and Galvin conclude that success of acquisitions is conditioned by many factors except:

Accepted Answer

A)  related acquisitions are more likely to be successful 
B)  unrelated acquisitions are rarely successful 
C)  unrelated acquisitions are more likely to be successful 
D)  organisations that make acquisitions frequently maximise their chance of success 
A)  related acquisitions are more likely to be successful 
B)  unrelated acquisitions are rarely successful 
C)  unrelated acquisitions are more likely to be successful 
D)  organisations that make acquisitions frequently maximise their chance of success

Question 14

Most of the empirical evidence about success in acquisitions is concerned only with acquirer and target shareholders.It shows that:

Accepted Answer

A)  target shareholders do well 
B)  acquirer shareholders do well 
C)  both groups of shareholders do well. 
D)  neither group of shareholders do well 
A)  target shareholders do well 
B)  acquirer shareholders do well 
C)  both groups of shareholders do well. 
D)  neither group of shareholders do well

Question 15

In testing the strategic logic for a joint venture,which of the following questions is NOT considered by the company?

Accepted Answer

A)  Does it need a partner and for how long? 
B)  How big is the payoff for both parties? 
C)  Does the partner have necessary skills and resources? 
D)  Is a joint venture the best option? 
A)  Does it need a partner and for how long? 
B)  How big is the payoff for both parties? 
C)  Does the partner have necessary skills and resources? 
D)  Is a joint venture the best option?

Question 16

Success of merger and acquisition is determined by the quality of strategic analysis,search and valuation.

Accepted Answer

A) True 
 B)False

Question 17

In cross-border acquisitions,due diligence should only focus on cultural compatibility issues.

Accepted Answer

A) True 
 B)False

Question 18

Leveraged buyout is a(n)___ of an organisation using a large percentage of debt to fund the ___.:

Accepted Answer

A)  merger, acquisition 
B)  acquisition, acquisition 
C)  acquisition, merger 
D)  merger, merger 
A)  merger, acquisition 
B)  acquisition, acquisition 
C)  acquisition, merger 
D)  merger, merger

Question 19

Explain the differences between absorption and preservation acquisitions.

Accepted Answer

The aim of absorption acquisitions is to

Question 20

It is essential to acquire 50.1% of the shares to acquire another organisation.

Accepted Answer

A) True 
 B)False

One of the integration issues relating to managing people in acquired company is:

Experienced managers argue that it is the ___ between the partners that binds them together:

Anslinger and Copeland's study of leveraged buyouts and diversified corporations showed that:

Acquirers of publicly listed companies usually have to pay a premium in order to entice current shareholders.

In 'absorption acquisitions',the acquirer needs to ensure that _ at the target switch _ and ___ as quickly as possible:

Identify the reasons for creating joint ventures.

According to Hubbard,Rice and Galvin,in many industries the winners will be the companies that:

The internationally used term 'M&A' recognises that there are few practical differences between mergers and acquisitions.

Joint venture is NOT used to achieve which of the following purposes:

Hubbard,Rice and Galvin define a merger as:

The 'trust' between partners is largely determined by:

The objective of preservation acquisition is to preserve the green credentials of the acquired organisation.

Hubbard,Rice and Galvin conclude that success of acquisitions is conditioned by many factors except:

Most of the empirical evidence about success in acquisitions is concerned only with acquirer and target shareholders.It shows that:

In testing the strategic logic for a joint venture,which of the following questions is NOT considered by the company?

Success of merger and acquisition is determined by the quality of strategic analysis,search and valuation.

In cross-border acquisitions,due diligence should only focus on cultural compatibility issues.

Leveraged buyout is a(n)_ of an organisation using a large percentage of debt to fund the _.:

Explain the differences between absorption and preservation acquisitions.

It is essential to acquire 50.1% of the shares to acquire another organisation.

What is ‘strategy’?

Analysing business strategy: creating value

Analysing the external environment

Analysing the organisation’s resources and capabilities

Measuring strategic organisation performance

Gap analysis and business-level strategic options

Strategic decision making

Dynamic competitive strategy

Corporate/multi-business strategy

International strategy

Capabilities,systems and structure

Leadership,people and culture

Change management

Filters

Exam 10: Acquisitions and alliances

One of the integration issues relating to managing people in acquired company is:

Experienced managers argue that it is the ___ between the partners that binds them together:

Anslinger and Copeland's study of leveraged buyouts and diversified corporations showed that:

Acquirers of publicly listed companies usually have to pay a premium in order to entice current shareholders.

In 'absorption acquisitions',the acquirer needs to ensure that ___ at the target switch ___ and ___ as quickly as possible:

Identify the reasons for creating joint ventures.

According to Hubbard,Rice and Galvin,in many industries the winners will be the companies that:

The internationally used term 'M&A' recognises that there are few practical differences between mergers and acquisitions.

Joint venture is NOT used to achieve which of the following purposes:

Hubbard,Rice and Galvin define a merger as:

The 'trust' between partners is largely determined by:

The objective of preservation acquisition is to preserve the green credentials of the acquired organisation.

Hubbard,Rice and Galvin conclude that success of acquisitions is conditioned by many factors except:

Most of the empirical evidence about success in acquisitions is concerned only with acquirer and target shareholders.It shows that:

In testing the strategic logic for a joint venture,which of the following questions is NOT considered by the company?

Success of merger and acquisition is determined by the quality of strategic analysis,search and valuation.

In cross-border acquisitions,due diligence should only focus on cultural compatibility issues.

Leveraged buyout is a(n)___ of an organisation using a large percentage of debt to fund the ___.:

Explain the differences between absorption and preservation acquisitions.

It is essential to acquire 50.1% of the shares to acquire another organisation.

What is ‘strategy’?

Analysing business strategy: creating value

Analysing the external environment

Analysing the organisation’s resources and capabilities

Measuring strategic organisation performance

Gap analysis and business-level strategic options

Strategic decision making

Dynamic competitive strategy

Corporate/multi-business strategy

International strategy

Capabilities,systems and structure

Leadership,people and culture

Change management

Filters

In 'absorption acquisitions',the acquirer needs to ensure that _ at the target switch _ and ___ as quickly as possible:

Leveraged buyout is a(n)_ of an organisation using a large percentage of debt to fund the _.: