1.

Why do companies engage in M&A?

To get into new markets

To get access to new capabilities

Acquirer has strong experience in M&As

All of the above

2.

Why do companies fail in M&A?

1 point

Managers act narrowly in their own personal interest

Managers are overly optimistic (hubris)

Due to poor post-integration plans

All of the above

3.

Which of the following is NOT a type of corporate transaction?

Mergers

Acquisitions

Divestitures

Alliances

None of the above

4.

As an intermediate alternative between being fully integrated ("make") and transacting in the market ("buy"), two firms can enter into an agreement whereby they create a third firm that they co-own and contribute resources to. Such an agreement is typically classified as a/an:

1 point

Franchising agreement

Equity alliance

Joint venture

Licensing contract

5.

When a parent company separates a unit into a new company and shareholders can exchange their shares in the parent for that of the unit, it is called a/an

Carve out

Spin off

Alliance

Split off

Unit Sales

6.

Strategic alliances include all of the following, EXCEPT:

Acquisitions

Technology licensing arrangements

Equity Alliances

Relational contracts

Joint Ventures

7.

All of the following are disadvantages of alliances, EXCEPT:

Conflict with the partner

Competitors gain access to capabilities, technologies, markets

Poor integration can reduce synergies

Coordination problems in decision making