1. Which of the following would best describe the situation where a firm that constructs fiber optic cable networks acquires a firm that manufactures the actual fiber cable itself.

   		A. horizontal acquisition
   		B. vertical acquisition
   		C. hostile takeover
   		D. acquisition of liquid assets
   		E. conglomerate acquisition

1. Which of the following would best describe the situation where the existing management of a firm offers to purchase the outstanding public shares and take the company private?

   		A. proxy contest
   		B. merger acquisition
   		C. leveraged buyout
   		D. asset purchase acquisition
   		E. taxable acquisition

1. Which of the following refer to the synergistic gains from merger due to revenue enhancement?

   		I. Marketing gains
   		II. Strategic benefits
   		III. Unused debt capacity
   		IV. Surplus funds
   		A. I and II only
   		B. II and IV only
   		C. I, II and III only
   		D. I, II and IV only
   		E. II, III and IV only

Greenmail is one type of _______.

		A. a targeted repurchase agreement
		B. an exclusionary self tender offer
		C. a corporate charter amendment
		D. a poison pill
		E. a flip-over provision

Which of the following are not possible cash flow benefits from a merger or acquisition?

		I. Cost reductions
		II. Marketing gains
		III. Diversification benefits
		A. I only
		B. II only
		C. III only
		D. I and II only
		E. II and III only

1. In a _______ acquisition, one firm directly solicits existing shareholders, in many cases without first consulting the target firm's management.

   		A. horizontal
   		B. vertical
   		C. conglomerate
   		D. tender offer
   		E. pooling of interests