Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following phases are considered as prepurchase decision activities in the acquisition process flow EXCEPT A. integration B. screening. C.First contact If KFC merge or

The following phases are considered as prepurchase decision activities in the acquisition process flow EXCEPT

A. integration

B. screening.

C.First contact

If KFC merge or acquire McDonalds, such merger or acquisition is considered as __________

A.Horizontal merger

B.Vertical merger

C.Conglomerate merger

What is the cause of agency problem in the company?

A.Inadequate compensation of the managers.

B.Difference between interests of the shareholders and the companys managers.

C.Difference between interest of a unit trust agent and the regulator.

As one of the available business-level strategies, cost leadership involves __________

A.Company minimising its costs through efficiency and offering its products at much lower price than competitors while gaining high profitability through high sales volumes.

B.Company creating perception that the companys products are different from the products offered by its competitors.

C.Company selling a few products or services to a single market and compete by understanding customers needs better than competitors

Merger or acquisition involving companies that compete in the same industry is referred as __________.

A.Conglomerate merger or acquisition

B.Horizontal merger or acquisition

C.Concentric merger or acquisition

f KFC mergers or acquires a supplier who supplies chicken to the company, it will be considered as __________

A.Conglomerate merger or acquisition because both companies are from completely different industries.

B.Vertical merger or acquisition because both companies operate at different stages of the supply chain.

C.Concentric merger or acquisition because both companies produce products that complement each othe

The following statements are TRUE about forward integration and backward integration EXCEPT

A.If a company merger or acquire its distributor, such merger or acquisition is considered forward integration.

B.If a company merge or acquire its supplier, such merger or acquisition is considered backward integration.

C.If a company merge or acquire its competitor, such merger or acquisition is considered backward-forward integration.

If KFC acquires its suppliers, such merger or acquisition is considered as __________

A.Conglomerate merger.

B.Vertical merger.

C.Horizontal merger.

If Air Asia merge or acquire a soft drink manufacturer, such merger or acquisition is considered as __________

A.Vertical merger

B.Conglomerate merger

C.Horizontal merger

News on the acquisition of a company may create worries among the company stakeholders of the company EXCEPT

A.Customers are afraid that the they may have to pay higher prices for the companys products.

B.Suppliers are afraid that their business may be affected if the operations of the company is disrupted due to the transition of the company to its new owner.

C.Workers of the company are afraid of being laid off.

Which of the following diversification strategy is the riskiest?

A.New product is introduced in existing market

B.New product is introduced in new market.

C.Existing product is introduced in new market.

The following statements are TRUE about SWOT analysis EXCEPT

A.Analysis of external environment of the company requires determination of the opportunities and threats to the company.

B.The company should maximize its strengths, weaknesses, opportunities, and threats.

C.Internal assessment of the company involves identifying the companys strengths and weaknesses.

Unrelated diversification occurs when __________

A.A company sells its existing products in new markets

B.A company sells new products in new markets

C.A company sells new products in existing markets

As one of the available business-level strategies, product differentiation involves ___________

A.Company creating perception that the companys products are different from the products offered by its competitors.

B.Company selling a few products or services to a single market and compete by understanding customers needs better than competitors.

C.Company minimising its costs through efficiency and offering its products at much lower price than competitors while gaining high profitability through high sales volumes.

__________ indicates the ability of the buyer to manage the acquired company.

A.Operating risk

B.Overpayment risk

C.Financial risk

__________ involves the setting of objectives and performance milestones for each employee supporting the implementation strategy.

A.Business strategy

B.Implementation strategy

C.Functional strategy

The three preliminary legal documents include __________

A.Term sheet, letter of agreement, and confidentiality agreement.

B.Confidentiality agreement, balance sheet, and letter of intent.

C.Letter of intent, confidentiality agreement, and term sheet

The company being purchased by another company is known as __________.

A.Acquiring company

B.Target company

C.Freight forwarding company

Which ONE of the following statements correctly explains hubris?

A.Managers believes that the market valuation is superior than their valuation of the company that they wish to buy.

B.Hubris causes managers of the buying firm to purchase a company at a price higher than market value.

C.Hubris is caused by winners curse.

Hostile takeover occurs when _________.

A.A merger involves rivals.

B.The shareholders or top management of the acquired companies are against the takeover.

C.The shareholders or top management of the acquired companies are buying company are against the takeover

PLZ SOMEONE HELP WITH THESE

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investment Management

Authors: Geoffrey Hirt, Stanley Block

10th edition

0078034620, 978-0078034626

More Books

Students also viewed these Finance questions