Merger & acquisition

In which type of M&A, no company survives.

• Acquisition

• Amalgamation

• Merger

• All of the above

ABC Ltd acquired substantial number of equity shares in XYZ Ltd. It is called as

• Merger

• Amalgamation

• Acquisition

• Absorption

____ refers to expected cost savings, growth opportunities and other financial benefits occur as a result of the combination of two companies.

• Value creation

• Acceleration

• Synergies

• Speculation

What is the real difference between a merger and an acquisition?

• No real difference-the terms are synonymous

• An acquisition is a merger involving a forceful takeover

• In a merger, there is never any acquirer or target- two companies simply fuse

• A merger is a type of acquisition in which the acquirer and the target combine to become one legal entity

_____ is an advantage of M&A transaction.

• Increase in cost

• Economies of scale

• cultural differences

• layoff of employees

What happens in demerger of companies?

• Companies are merged into one

• There is no division of company

• Companies are divided into two

• None of the above

To focus on core operations, is a reason of _____

• Merger

• Demerger

• Amalgamation

• Acquisition

What happens to market share, due to merger?

• Increases

• Decreases

• No change

• constant of both companies

Economies of scale are when cost ____ undergone by companies when it increases the level of _____.

• Increases; output

• Decreases; output

• Increases; profit

• Decreases; profit

In which type of combination, both the companies are equal in terms of size.

• Merger

• Amalgamation

• Acquisition

• All of the above