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.

Acquirer companies can do well in an acquisition for all of the following reasons EXCEPT:

Winner's curse

Better information about the target than others

Luck

Specific synergies with the target

3.

Which of the following is NOT a type of divestiture?

Asset sales

Unit Sales

Spin off

Split off

Carve out

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. Such an agreement is typically classified as a/an:

Equity alliance

Joint venture

Franchising agreement

Licensing contract

5.

When a parent company creates two new companies and its shares are distributed to the parent's shareholders, it is called a/an

Alliance

Spin off

Unit Sales

Split off

6.

Strategic alliances include all of the following, EXCEPT:

Relational contracts

Acquisitions

Joint Ventures

Technology licensing arrangements

Equity Alliances

7.

Companies form alliances for each of the following reasons, EXCEPT:

For greater coordination and control relative to M&As

To learn from their partner

To access new markets or capabilities

To mitigate risks