Question 15-20

15. Which of the following are examples of business alliances? a. Mergers b. Acquisitions C. d. Equity partnerships Joint ventures C and D 16. Antitrust regulatory authorities tend to look most favorably on which type of alliances? a. b. c. d. e. Equity partnerships Global alliances None of the above Marketing alliances among competitors Project oriented ventures involving collaborative research divestitures or equity carve-outs, the spin-off generally results in an infusion of cash to the parent company. True or False 18. Which of the following characteristics of a firm would limit the firm's attractiveness as a potential LBO candidate? b. d. e. All of the above Substantial tangible assets High reinvestment requirements High R&D requirements B and C 19. Which of the following are commonly used sources of funding for leveraged buyouts? Secured debt Unsecured debt Preferred stock Seller financing All of the above a. b. d. 20, Which of the following is not true about mergers and acquisitions and taxes? Tax considerations and strategies are likely to have an important impact on how a deal is structured by affecting the amount, timing, and composition of the price offered to a target firm. Tax factors are likely to affect how the combined firms are organized following closing, as the tax ramifications of a corporate structure are quite different from those of a limited liability company or partnership c. Potential tax savings are often the primary motivation for an acquistion or merger b. d. Transactions may be either partly or entirely taxable to the target firm's shareholders or tax-free. b. None of the above