FINA 415-A | Quiz 1 Qs & As on Acquisitions and
M&As Strategies
1. Which of the following are one of the three types of acquisitions?
i. Takeovers
ii. Proxy contest
iii. Going private
A. i and ii only
B. ii and iii only
C. i and iii only
D. All of the above
E. None of the above
2. The takeover of PeopleSoft by Oracle was a friendly takeover.
A. True
B. False
3. Which of the following statements are true?
i. In the acquisition of stock, no shareholders meetings are required to seek
their approval, unlike in a merger.
ii. Acquisition of stock is usually unfriendly and costly compared to a merger.
iii. In the acquisition of stock, minority shareholders can hold out and a complete
absorption of the target may not be possible. For this, a merger may be
required eventually.
A. i and ii only
B. ii and iii only
C. i and iii only
D. All of the above
E. None of the above
4. Which of the following statements are true about acquisition of assets?
i. A formal vote of the selling firm’s shareholders is required.
ii. This form of acquisition avoids the potential problem of holdout by
minority shareholders.
iii. It is a costly legal process.
A. i and ii only
B. ii and iii only
C. i and iii only
D. All of the above
E. None of the above
5. Which of the following three types of acquisitions is most likely to have
anticompetitive effects?
, A. Horizontal acquisition
B. Vertical acquisition
C. Conglomerate acquisition
6. A tender offer can be made by the acquiring firm to the shareholders of the target
firm only after obtaining the approval of the target firm’s management and board of
directors.
A. True
B. False
7. Which of the following is an example of a vertical acquisition?
A. Exxon’s acquisition of Mobil
B. Pfizer’s acquisition of Wyeth
C. Luxottica’s acquisition of LensCrafters
D. Philip Morris’s acquisition of General Foods
8. For a large public company with a widely distributed shareholder base, which is a
easier or better from of takeover?
A. Stock deal
B. Merger
9. Which is the largest among the following mergers?
A. Exxon takeover of Mobil
B. RFS Holdings takeover of ABN-AMRO Holding NV
C. Pfizer takeover of Warner-Lambert
D. America Online takeover of Time Warner
10. One important reason to grow through M&As rather than internal growth is:
A. It is more profitable
B. It is more cost efficient
C. It is faster
D. It avoids labour problems
11. General Electric originated in the
A. first merger wave, 1897-1904
B. second merger wave, 1916-1929
C. third merger wave, 1965-1969
D. fourth merger wave, 1984-1989
E. fifth merger wave, 1992-2001
12. The first merger waves was characterized by
A. Horizontal acquisitions
B. Vertical acquisitions
C. Conglomerate acquisitions
M&As Strategies
1. Which of the following are one of the three types of acquisitions?
i. Takeovers
ii. Proxy contest
iii. Going private
A. i and ii only
B. ii and iii only
C. i and iii only
D. All of the above
E. None of the above
2. The takeover of PeopleSoft by Oracle was a friendly takeover.
A. True
B. False
3. Which of the following statements are true?
i. In the acquisition of stock, no shareholders meetings are required to seek
their approval, unlike in a merger.
ii. Acquisition of stock is usually unfriendly and costly compared to a merger.
iii. In the acquisition of stock, minority shareholders can hold out and a complete
absorption of the target may not be possible. For this, a merger may be
required eventually.
A. i and ii only
B. ii and iii only
C. i and iii only
D. All of the above
E. None of the above
4. Which of the following statements are true about acquisition of assets?
i. A formal vote of the selling firm’s shareholders is required.
ii. This form of acquisition avoids the potential problem of holdout by
minority shareholders.
iii. It is a costly legal process.
A. i and ii only
B. ii and iii only
C. i and iii only
D. All of the above
E. None of the above
5. Which of the following three types of acquisitions is most likely to have
anticompetitive effects?
, A. Horizontal acquisition
B. Vertical acquisition
C. Conglomerate acquisition
6. A tender offer can be made by the acquiring firm to the shareholders of the target
firm only after obtaining the approval of the target firm’s management and board of
directors.
A. True
B. False
7. Which of the following is an example of a vertical acquisition?
A. Exxon’s acquisition of Mobil
B. Pfizer’s acquisition of Wyeth
C. Luxottica’s acquisition of LensCrafters
D. Philip Morris’s acquisition of General Foods
8. For a large public company with a widely distributed shareholder base, which is a
easier or better from of takeover?
A. Stock deal
B. Merger
9. Which is the largest among the following mergers?
A. Exxon takeover of Mobil
B. RFS Holdings takeover of ABN-AMRO Holding NV
C. Pfizer takeover of Warner-Lambert
D. America Online takeover of Time Warner
10. One important reason to grow through M&As rather than internal growth is:
A. It is more profitable
B. It is more cost efficient
C. It is faster
D. It avoids labour problems
11. General Electric originated in the
A. first merger wave, 1897-1904
B. second merger wave, 1916-1929
C. third merger wave, 1965-1969
D. fourth merger wave, 1984-1989
E. fifth merger wave, 1992-2001
12. The first merger waves was characterized by
A. Horizontal acquisitions
B. Vertical acquisitions
C. Conglomerate acquisitions
