M&A 1st class test

The financial synergies include:

• lower cost of capital

• tax benefits

• lower cost of capital and tax benefits

• None of the above

The supply chain for cost reduction in synergy can arise from...

• buying

• producing

• assembling, moving, storing, selling goods, and related services

• all of the above

The cultural issues between the acquirer and the target can be best resolved at:

• leadership level

• management level

• employee level

• none of the above

Which of the following restructuring activities does not result in an expansion of a firm?

• Joint ventures

• Mergers

• Divestitures

• Acquisitions

• None of these

Which of the following activities is/are not associated with Spin-off?

• Creation of a new legal entity

• Distribution of shares to a portion of existing shareholders in a subsidiary in exchange for parent company stock

• Distribution of shares on pro rata basis to existing shareholders of the parent company

• Separation of control

• All of these

Firm X plans to sell off a part of the firm via an equity offering to outsiders. Which of the following means shall be applied by the company for executing its plan?

• Equity Carve-out

• Spin-off

• Split-Up

• Divestiture

• Tender Offer

Changes in the company byelaws to make the acquisition of a company more difficult or more expensive are referred to as ...

• Takeover

• Anti-takeover Amendments

• Corporate Control

• Proxy Contests

• None of these