1- A Strategic alliance is:

Options:

a) An agreement between firms to create a separate, co-owned entity to pursue a joint goal

b) The transfer of control of a firm from one group of shareholders to another

c) An agreement between firms to cooperate in pursuit of a joint goal

d) An acquisition of another company using a significant amount of borrowed money

2- The difference between the purchase price and the estimated fair market value of the net assets is:

a) Synergy

b) The purchase Method

c) Goodwill

d) Tender offer

3- The basic legal procedure used to acquire another firm is merger. Which of the following is NOT true regarding a merger:

a) The acquiring firm retains its identity and acquired firm ceases to exit as a separate entity

b) A merger is legally simple and does not cost as much as some other forms of acquisition

c) There is no need to transfer title to individual assets of the acquired firm to the acquiring firm

d) Approval of by a vote of the stockholders of each firm is not required

4- A carefully planned formal budget benefits a company in many ways, EXCEPT:

a) Evaluating the performance of each department

b)Assigning decision making responsibilities

c) Management responsibilities

d) Determining Depreciation methods