What is not part of the acquisition vehicle (the legal entity to acquire/merge with the target)?

	A.	Corporate Shell
	B.	ESOP
	C.	Holding Company
	D.	EarnoutAgreement

What is it called when an acquirer'scompleting a takeover in stages spread over an extended period of time? They may be used to structure an earnout, enable the target to complete the development of a technology or progress, or await regulatory approval of a license or patent.

	A.	Two-step transaction
	B.	Subsidiary transaction
	C.	Stock for stock transaction
	D.	Staged transaction

A _________________ is used to satisfy daily liquidity requirements, secured by the firm's most liquid assets such as receivables and inventory

	A.	mezzanine debt
	B.	revolving credit
	C.	bullet loans
	D.	leveraged loans

What is the disadvantageof the cash form of payment?

	A.	Risk of default
	B.	Tax liability
	C.	Audit expense
	D.	Increase in leverage

The initial offer price for the target firm is defined as

	A.	The minimum price
	B.	The present value of the minimum price plus some fraction of the present value of net synergy
	C.	The present value of net synergy plus the current market value of the target firm
	D.	The maximum price less the minimum price
	E.	The maximum price less the present value of net synergy

Which of the following is not true about generally accepted accounting principles (GAAP)?

	A.	GAAP provides specific guidelines as to how to account for specific events impacting the financial performance of the firm
	B.	The scrupulous application GAAP accounting rules does ensure consistency in comparing one firm's financial performance to another
	C.	Differences between how a firm records actual financial transactions and how they should be recorded based on GAAP may indicate fraud or mismanagement
	D.	GAAP guarantees that a firm's financial books are accurate

LBO capital structure consists of unsecured subordinated debt,also called

	A.	Mezzanine debt
	B.	Junk Bonds
	C.	Reverse split
	D.	All of the above

Net synergy may be estimated as the difference between the sum of the present values of the target and acquiring firms, including the effects of synergy, and the value of the target firm including the effects of synergy.

True

False

Which of the following is generally not considered a source of value to the acquiring firm?

	A.	Duplicate facilities
	B.	Patents
	C.	Land on the balance sheet at below market value
	D.	Warranty claims
	E.	Copyrights