Question $1(1$ point$)$

A consolidation is a special type of merger where a new entity is formed that absorbs the existing two firms.

True

False

Question $2(1$ point$)$

When a takeover is classified as a negotiated merger, the boards of two firms negotiate the terms of the

deal. In contrast, a takeover via tender offer occurs when an acquiring firm makes a public offer directly to

target firm shareholders to buy their shares at a certain price by a certain day.

True

False

Question $3(1$ point$)$

When a firm makes a hostile tender offer, it typically offers cash for the target firm's shares.

True

False

Question $4(1$ point$)$

Vertical mergers are usually initiated when a company buys generic products offered by many suppliers.

True

False

Question $5(1$ point$)$

Conglomerate mergers were very common in the $1960$s and $1970$s$,$ and these mergers proved very

successful.

True

False