Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
|
|
|
1.
|
In
which of the following scenarios is a joint venture likely to be more attractive than
acquisition? a. | Horizontal
integration | b. | Vertical integration | c. | New market
entry | d. | Larger resource pool. | | |
|
|
|
2.
|
A
company specializing in producing mass market cars acquires a company which specializes in financial
services. The new company can now offer financial services to its car purchasers. What
form of diversification is this? a. | Resource-based | b. | Unrelated | c. | Routine-based | d. | Replication-based | | |
|
|
|
3.
|
Which
of these is not a factor causing weak synergy? a. | Underestimated weaknesses | b. | Competitor
activity | c. | Premium paid | d. | Making too many
resources available to the integration program | | |
|
|
|
4.
|
Which
of these is not one of Drucker’s (1982) five rules for successful acquisitions? a. | Determine the
exact contribution the organization can make to the acquiring company. | b. | Value the people
of the acquired company. | c. | Within a year, promote managers across company
boundaries. | d. | Value the products, services and customers of the acquired
company. | | |
|
|
|
5.
|
Ramsay (1987) argues there are four stages to effective acquisition strategies.
Which of these is not one of those stages? a. | Formulate a clear strategy. | b. | The
acquisition. | c. | A search for alternatives. | d. | Develop a
pre-acquisition implementation strategy. | | |
|
|
|
6.
|
Many
merger discussions breakdown or are abandoned. Which of these is not a reason
why? a. | Egos can get in
the way | b. | Reluctance to accept which will become ‘number
two’. | c. | The bid is deemed hostile leading to aggressive
defense. | d. | Inadequate consultation with shareholders who then
intervene. | | |
|
|
|
7.
|
Research into diversification and acquisition can be divided into 4 schools. Which of
the following is not one of the schools? a. | Environmental | b. | Financial | c. | Accounting | d. | Economic | | |
|
|
|
8.
|
Within a diverse conglomerate, Goold et al (1994) argues that there exists
what? a. | The
focus | b. | The arena | c. | The
heartland | d. | The core | | |
|
|
|
9.
|
According to Ernst and Young the nature of the post acquisition challenge depends on
the type of acquisition. Which of the following is not one of the four types? a. | Symbiotic
acquisition | b. | Absorption acquisition | c. | Mutual
acquisition | d. | Geographical acquisition | | |
|
|
|
10.
|
Which
two companies agreed to develop a new business jointly? a. | Club
Mediterranee and Carnival | b. | Sony and Apple | c. | Guinness and
LVMH | d. | NCR and American
Express | | |
|