1. A firm that has not sold many shares of stock on the public market is BEST described as which of the following?

A.Tender offer

B. Privately held

C. Controlling shares

D. Premium

E. Closely held

2. Which one of the following is a difference between acquisitions and mergers?

A. Mergers are public while acquisitions are private

B. Mergers rather than acquisitions typically involve firms of equal size and profitability

C. Mergers use cash while acquisitions use stock to purchase

D. Acquisitions rather than mergers tend to be friendly

E. Mergers and acquisitions involve one buyer and one target

3. Why are mergers and acquisition strategies important?

A. To generate additional value for a firm

B. For diversification and vertical integration

C. To prevent hostile takeovers

D. To limit control of the FTC

E. To satisfy demands of the FTC