Corporate Finance and Underwriting Quiz

What does the term "M&A" stand for?

• Mergers and Acquisitions

• Market and Analysis

• Money and Assets

• Management and Advisory

Which of the following is a reason for inorganic growth through M&A?

• Increase in dividends

• Acquisition of resources and capabilities

• Reducing workforce

• Improving internal cash flows

Which type of transaction involves a company acquiring another firm's assets?

• Spin-off

• Carve-out

• Acquisition

• Joint venture

What is the goal of a takeover bid?

• To increase the acquirer's market share

• To issue new equity

• To acquire a public company by making an offer to its shareholders

• To liquidate the target company's assets

What is one of the main motives for mergers?

• Decrease in market competition

• Generation of synergies

• Expansion of product lines through internal growth

• Increase in regulatory constraints

Which of the following is NOT a typical corporate finance advisory service?

• Capital structure advisory

• Asset securitization

• Restructuring

• Mergers and acquisitions

A spin-off is best described as:

• Merging two companies into one

• Divesting a business unit as a separate company

• Acquiring another company

• Selling a minority stake in a company

Which of the following would be considered a friendly takeover bid?

• Acquisition approved by the target's board of directors

• Hostile takeover without the board's consent

• Government-mandated acquisition

• Acquisition by the company's employees

In M&A, what are synergies?

• Reductions in revenue

• Savings or value generated from combining two companies

• Increase in company liabilities

• Losses due to inefficiencies

What is the primary focus of capital structure advisory in corporate finance?

• Managing employee salaries

• Optimizing the mix of debt and equity financing

• Increasing dividend payouts

• Reducing market share