MAN 4720 2025/2026 Exam Questions
and Corresponding Answers with Surety
of 100% Pass Mark
The need to create _____ for stakeholders is a primary influence on a firm's
decisions to engage in merger and acquisition activity. - 🧠 ANSWER ✔✔VALUE
An influence that impacts a firm's decision to pursue a merger or acquisition is
increased confidence in its: - 🧠 ANSWER ✔✔domestic 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): - 🧠 ANSWER
✔✔MERGER
Which of the following statements best explains how shareholders are affected by
acquisitions? - 🧠 ANSWER ✔✔Acquired 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.
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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: - 🧠 ANSWER ✔✔increased 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: - 🧠 ANSWER ✔✔a horizontal acquisition
A popular juniors clothing store features young designers and has been very
successful. To gain strategic competitiveness, the clothing store frequently acquires
young social-media sensations' designs and brings their designs to life in the store.
What type of acquisition is the store using to increase its strategic competitiveness?
- 🧠 ANSWER ✔✔Related acquisition
Two specialty craft stores have just been bought by craft giant Ultimate Crafts. By
rebranding the small stores, Ultimate Crafts' executives hope to gain strategic
competitiveness in what way? - 🧠 ANSWER ✔✔Market power
Which of the following is an example of a problem that can prevent an acquisition
from being successful? - 🧠 ANSWER ✔✔Too much diversification
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
and Corresponding Answers with Surety
of 100% Pass Mark
The need to create _____ for stakeholders is a primary influence on a firm's
decisions to engage in merger and acquisition activity. - 🧠 ANSWER ✔✔VALUE
An influence that impacts a firm's decision to pursue a merger or acquisition is
increased confidence in its: - 🧠 ANSWER ✔✔domestic 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): - 🧠 ANSWER
✔✔MERGER
Which of the following statements best explains how shareholders are affected by
acquisitions? - 🧠 ANSWER ✔✔Acquired 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.
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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: - 🧠 ANSWER ✔✔increased 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: - 🧠 ANSWER ✔✔a horizontal acquisition
A popular juniors clothing store features young designers and has been very
successful. To gain strategic competitiveness, the clothing store frequently acquires
young social-media sensations' designs and brings their designs to life in the store.
What type of acquisition is the store using to increase its strategic competitiveness?
- 🧠 ANSWER ✔✔Related acquisition
Two specialty craft stores have just been bought by craft giant Ultimate Crafts. By
rebranding the small stores, Ultimate Crafts' executives hope to gain strategic
competitiveness in what way? - 🧠 ANSWER ✔✔Market power
Which of the following is an example of a problem that can prevent an acquisition
from being successful? - 🧠 ANSWER ✔✔Too much diversification
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
