MAN4720 2025/2026 Exam Questions
and Correct Answers | New Update
When one firm purchases either a 100% interest or a controlling interest in a firm
this is referred to as what? - 🧠 ANSWER ✔✔acquisition
A friendly acquisition: - 🧠 ANSWER ✔✔facilitates the integration of the acquired
and acquiring firms.
William owns a large amount stock in Claire's Home brew a regional brewing
company that is considered a likely takeover target by a world renown brewer. It
would probably be in William's financial interest if Clair's owners: - 🧠 ANSWER
✔✔sold the company to the larger brewer.
There are inherent problems when companies attempt to grow too large. Which of
the following is the most prevalent problem? - 🧠 ANSWER ✔✔usually increase
bureaucratic controls.
High levels of debt are often used in acquisitions, this has contributed to which of
the following? - 🧠 ANSWER ✔✔an increased risk of bankruptcy for acquiring
firms.
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Which of the following typically occurs after a leveraged buyout? - 🧠 ANSWER
✔✔selling of assets
When a company is able to acquire one of its suppliers, it is engaging in which of
the following? - 🧠 ANSWER ✔✔vertical acquisition.
__________ may be necessary because acquisitions create a situation in which the
newly formed firm has duplicate organizational functions such as sales,
manufacturing, distribution, and human resource management. - 🧠 ANSWER
✔✔Downsizing
Private synergy: - 🧠 ANSWER ✔✔is not easy for competitors to understand and
imitate.
Caterpillar's payment of a 32 percent premium for the acquisition of Bucyrus in
2011 and subsequent need to issue more stock illustrates the acquisition problem
of: - 🧠 ANSWER ✔✔large or extraordinary debt.
The quickest way for a firm to diversify its portfolio of businesses is through
acquisition, why? - 🧠 ANSWER ✔✔it is difficult and time intensive for companies
to develop products that differ from their current product line.
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
and Correct Answers | New Update
When one firm purchases either a 100% interest or a controlling interest in a firm
this is referred to as what? - 🧠 ANSWER ✔✔acquisition
A friendly acquisition: - 🧠 ANSWER ✔✔facilitates the integration of the acquired
and acquiring firms.
William owns a large amount stock in Claire's Home brew a regional brewing
company that is considered a likely takeover target by a world renown brewer. It
would probably be in William's financial interest if Clair's owners: - 🧠 ANSWER
✔✔sold the company to the larger brewer.
There are inherent problems when companies attempt to grow too large. Which of
the following is the most prevalent problem? - 🧠 ANSWER ✔✔usually increase
bureaucratic controls.
High levels of debt are often used in acquisitions, this has contributed to which of
the following? - 🧠 ANSWER ✔✔an increased risk of bankruptcy for acquiring
firms.
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Which of the following typically occurs after a leveraged buyout? - 🧠 ANSWER
✔✔selling of assets
When a company is able to acquire one of its suppliers, it is engaging in which of
the following? - 🧠 ANSWER ✔✔vertical acquisition.
__________ may be necessary because acquisitions create a situation in which the
newly formed firm has duplicate organizational functions such as sales,
manufacturing, distribution, and human resource management. - 🧠 ANSWER
✔✔Downsizing
Private synergy: - 🧠 ANSWER ✔✔is not easy for competitors to understand and
imitate.
Caterpillar's payment of a 32 percent premium for the acquisition of Bucyrus in
2011 and subsequent need to issue more stock illustrates the acquisition problem
of: - 🧠 ANSWER ✔✔large or extraordinary debt.
The quickest way for a firm to diversify its portfolio of businesses is through
acquisition, why? - 🧠 ANSWER ✔✔it is difficult and time intensive for companies
to develop products that differ from their current product line.
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
