WPC 480 Chapter 7 Exam Questions And Answers 100% Solved 2024/2025

WPC 480 Chapter 7 Exam Questions And Answers 100% Solved 2024/2025 merger - answeris a strategy through which two firms agree to integrate their operations on a relatively coequal basis acquisition - answeris a strategy through which one firm buys a controlling, or 100 percent, interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio. Restructuring - answeris a strategy through which a firm changes its set of businesses or its financial structure. takeover - answerIs a special type of acquisition where the target firm does not solicit the acquiring firm's bid; thus, takeovers are unfriendly acquisitions. The need to create _____ for stakeholders is a primary influence on a firm's decisions to engage in merger and acquisition activity. - answervalue An influence that impacts a firm's decision to pursue a merger or acquisition is increased confidence in its: - answerdomestic economy. Disney bought Pixar in 2004 to extend and begin a new partnership in its renewed focus on animation. In the deal, Steve Jobs, the CEO of Pixar at the time, vowed to preserve the independent nature of Pixar. Since then, the two have put out hits such as Wall-E and Up. This partnership is an example of a(n): - answermerger. Which of the following statements best explains how shareholders are affected by acquisitions? - answerAcquired firms' shareholders often earn above-average returns as a result of acquisitions, whereas acquiring firms' shareholders often earn returns that are close to zero as a result of acquisitions. When a firm buys a competitor, supplier, distributor, or business in a highly-related industry so a core competency can be used to gain competitive advantage, this demonstrates an acquisition strategy to gain: - answerincreased market power. When a firm acquires another firm competing in the same industry, market power is increased by exploiting cost and revenue-based synergies. This type of acquisition is called: - answerhorizontal acquisit