MAN 4720 Exam 3 2025/2026 Exam
Questions and Correct Answers | New
Update
During the recent financial crisis, M&A activity ______, whereas in 2011,
M&A activity ______. - 🧠 ANSWER ✔✔declined; increased
Researchers have found that shareholders of acquired firms often: - 🧠
ANSWER ✔✔earn above-average returns.
All of the following statements are correct EXCEPT: - 🧠 ANSWER ✔✔the
majority of acquisitions increase long-term value for the acquiring firm.
,Claude holds a large number of shares of Bayou Beauty, a regional
brewing company that is considered a likely takeover target by a major
international brewer. It would probably be in Claude's financial interest if
Bayou Beauty's owners: - 🧠 ANSWER ✔✔sold the company to the larger
brewer.
In a merger: - 🧠 ANSWER ✔✔two firms agree to integrate their operations
on a relatively coequal basis.
There are few true mergers because: - 🧠 ANSWER ✔✔one firm usually
dominates in terms of market share, size, or value of assets.
A(n) ____ occurs when one firm buys a controlling, or 100 percent interest,
in another firm. - 🧠 ANSWER ✔✔acquisition
When the target firm does not solicit the acquiring firm's bid, it is referred to
as a(n): - 🧠 ANSWER ✔✔takeover or unfriendly acquisition.
Currently, the rationale for making an acquisition includes each of the
following EXCEPT: - 🧠 ANSWER ✔✔to decrease taxes paid by
shareholders.
,Market power is derived primarily from the: - 🧠 ANSWER ✔✔size of a firm
and its resources and capabilities.
The announcement that P&G was acquiring premium dog and cat food
manufacturer Iams was a _________ acquisition and is intended to
________. - 🧠 ANSWER ✔✔related; increase speed to market
A primary reason for a firm to pursue an acquisition is to: - 🧠 ANSWER
✔✔achieve greater market power.
When a firm acquires its supplier, it is engaging in a(n): - 🧠 ANSWER
✔✔vertical acquisition.
The acquisition of Sun Microsystems (a computer hardware producer) by
Oracle Corporation (a software firm) is an example of a(n): - 🧠 ANSWER
✔✔vertical acquisition
Horizontal, vertical, and related acquisitions to build market power: - 🧠
ANSWER ✔✔are likely to undergo regulatory review and analysis by
financial markets.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, Baby Doe's, a designer and manufacturer of children's clothing, has
decided to purchase a retail chain specializing in children's clothing. This
purchase is a(n): - 🧠 ANSWER ✔✔vertical acquisition.
Manny Inc. recently completed the purchase of its primary supplier. Manny
intends to begin expanding the market to which the suppliers' products are
sold. This purchase - 🧠 ANSWER ✔✔vertical acquisition.
Cross-border acquisitions are primarily made to: - 🧠 ANSWER
✔✔overcome barriers to entry in another country.
The presence of barriers to entry in a particular market will generally make
acquisitions ____ as an entry strategy. - 🧠 ANSWER ✔✔more likely
SpeakEasy, a U.S. software company that specializes in voice-recognition
software, wishes to rapidly enter the growing technical translation software
market. This market is dominated by firms making highly differentiated
products. To enter this market, SpeakEasy would be best served if it
considers a(an): - 🧠 ANSWER ✔✔acquisition of a highly related firm in the
technical translation market.
Questions and Correct Answers | New
Update
During the recent financial crisis, M&A activity ______, whereas in 2011,
M&A activity ______. - 🧠 ANSWER ✔✔declined; increased
Researchers have found that shareholders of acquired firms often: - 🧠
ANSWER ✔✔earn above-average returns.
All of the following statements are correct EXCEPT: - 🧠 ANSWER ✔✔the
majority of acquisitions increase long-term value for the acquiring firm.
,Claude holds a large number of shares of Bayou Beauty, a regional
brewing company that is considered a likely takeover target by a major
international brewer. It would probably be in Claude's financial interest if
Bayou Beauty's owners: - 🧠 ANSWER ✔✔sold the company to the larger
brewer.
In a merger: - 🧠 ANSWER ✔✔two firms agree to integrate their operations
on a relatively coequal basis.
There are few true mergers because: - 🧠 ANSWER ✔✔one firm usually
dominates in terms of market share, size, or value of assets.
A(n) ____ occurs when one firm buys a controlling, or 100 percent interest,
in another firm. - 🧠 ANSWER ✔✔acquisition
When the target firm does not solicit the acquiring firm's bid, it is referred to
as a(n): - 🧠 ANSWER ✔✔takeover or unfriendly acquisition.
Currently, the rationale for making an acquisition includes each of the
following EXCEPT: - 🧠 ANSWER ✔✔to decrease taxes paid by
shareholders.
,Market power is derived primarily from the: - 🧠 ANSWER ✔✔size of a firm
and its resources and capabilities.
The announcement that P&G was acquiring premium dog and cat food
manufacturer Iams was a _________ acquisition and is intended to
________. - 🧠 ANSWER ✔✔related; increase speed to market
A primary reason for a firm to pursue an acquisition is to: - 🧠 ANSWER
✔✔achieve greater market power.
When a firm acquires its supplier, it is engaging in a(n): - 🧠 ANSWER
✔✔vertical acquisition.
The acquisition of Sun Microsystems (a computer hardware producer) by
Oracle Corporation (a software firm) is an example of a(n): - 🧠 ANSWER
✔✔vertical acquisition
Horizontal, vertical, and related acquisitions to build market power: - 🧠
ANSWER ✔✔are likely to undergo regulatory review and analysis by
financial markets.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, Baby Doe's, a designer and manufacturer of children's clothing, has
decided to purchase a retail chain specializing in children's clothing. This
purchase is a(n): - 🧠 ANSWER ✔✔vertical acquisition.
Manny Inc. recently completed the purchase of its primary supplier. Manny
intends to begin expanding the market to which the suppliers' products are
sold. This purchase - 🧠 ANSWER ✔✔vertical acquisition.
Cross-border acquisitions are primarily made to: - 🧠 ANSWER
✔✔overcome barriers to entry in another country.
The presence of barriers to entry in a particular market will generally make
acquisitions ____ as an entry strategy. - 🧠 ANSWER ✔✔more likely
SpeakEasy, a U.S. software company that specializes in voice-recognition
software, wishes to rapidly enter the growing technical translation software
market. This market is dominated by firms making highly differentiated
products. To enter this market, SpeakEasy would be best served if it
considers a(an): - 🧠 ANSWER ✔✔acquisition of a highly related firm in the
technical translation market.
