7/28/25, 8:16 AM BUSI 4940 Exam 3 2025 COMPLETE EXAM QUESTIONS AND ACCURATE ANSWERS |ALREADY PASSED!! Flashcards | Quizlet
BUSI 4940 Exam 3 2025 COMPLETE EXAM
QUESTIONS AND ACCURATE ANSWERS
|ALREADY PASSED!!
Save
Terms in this set (74)
Corporate level is Diversification
concerned with
2 firms agree to integrate their operations on a
Merger
relatively co-equal basis to create another NEW firm
One firm buys a controlling (100% interest) in another
firm with the intent of making the acquired firm a
Acquisition
subsidiary business w/in its portfolio (amazon buying
whole foods)
Acquisition in which the target firm did not solicit the
Takeover
acquiring firm's bid for outright ownership
Increased Market Power ability to sell goods above competitive levels, costs of
occurs when: activities below competitors, a firm's size
Acquisitions intended to Regulatory review and analysis by financial markets
increase market power are
subject to:
Market power is increased Horizontal acquisitions, Vertical Acquisitions, Related
by: acquisitions
factors associated w a company's ability to engage
Entry Barriers
immediate access in a specific market
https://quizlet.com/1062589140/busi-4940-exam-3-2025-complete-exam-questions-and-accurate-answers-already-passed-flash-cards/?new 1/6
, 7/28/25, 8:16 AM BUSI 4940 Exam 3 2025 COMPLETE EXAM QUESTIONS AND ACCURATE ANSWERS |ALREADY PASSED!! Flashcards | Quizlet
acquisitions made between firms with headquarters in
Cross-Border Acquisitions
different countries
cost of new product development is high, desire an
Firms acquire (buy)
increased speed to enter product market (FB buying
because:
Insta)
Lower risk compared to managers view acquisitions as low risk, acquisitions
Developing new products discourgae innovation
All diversification can be mitigate
implemented through
acquisitions and ____ risk
An acquisition can: reduce negative effect of an intense rivalry, reduce a
(reshaping firm's firm's dependence
competitive scope)
Learning & Develop New build their own knowledge base, gain capabilities the
capabilities to: firm doesn't already possess
melding two disparate corp cultures, resolve
Integration challenges
problems regarding the status of the newly acquired
include:
firm's executives
Due Diligence process of evaluating a target firm for acquisition
Financing of intended transaction, differences in
Evaluation requires
culture between firms, tax consequences of
examining:
transactions
Increase likelihood of bankruptcy, lead to a
Large Amounts of Debt
downgrade of firm's credit rating, preclude investment
can:
in activities that contribute to firm's long-term success
When assets are worth more when used in
Synergy conjunction with each other than when they are used
separately (1+1=3)
Private Synergy idea of a perfect match
performance drops; curvilinear relationship between
Too much diversification:
diversification and performance
https://quizlet.com/1062589140/busi-4940-exam-3-2025-complete-exam-questions-and-accurate-answers-already-passed-flash-cards/?new 2/6
BUSI 4940 Exam 3 2025 COMPLETE EXAM
QUESTIONS AND ACCURATE ANSWERS
|ALREADY PASSED!!
Save
Terms in this set (74)
Corporate level is Diversification
concerned with
2 firms agree to integrate their operations on a
Merger
relatively co-equal basis to create another NEW firm
One firm buys a controlling (100% interest) in another
firm with the intent of making the acquired firm a
Acquisition
subsidiary business w/in its portfolio (amazon buying
whole foods)
Acquisition in which the target firm did not solicit the
Takeover
acquiring firm's bid for outright ownership
Increased Market Power ability to sell goods above competitive levels, costs of
occurs when: activities below competitors, a firm's size
Acquisitions intended to Regulatory review and analysis by financial markets
increase market power are
subject to:
Market power is increased Horizontal acquisitions, Vertical Acquisitions, Related
by: acquisitions
factors associated w a company's ability to engage
Entry Barriers
immediate access in a specific market
https://quizlet.com/1062589140/busi-4940-exam-3-2025-complete-exam-questions-and-accurate-answers-already-passed-flash-cards/?new 1/6
, 7/28/25, 8:16 AM BUSI 4940 Exam 3 2025 COMPLETE EXAM QUESTIONS AND ACCURATE ANSWERS |ALREADY PASSED!! Flashcards | Quizlet
acquisitions made between firms with headquarters in
Cross-Border Acquisitions
different countries
cost of new product development is high, desire an
Firms acquire (buy)
increased speed to enter product market (FB buying
because:
Insta)
Lower risk compared to managers view acquisitions as low risk, acquisitions
Developing new products discourgae innovation
All diversification can be mitigate
implemented through
acquisitions and ____ risk
An acquisition can: reduce negative effect of an intense rivalry, reduce a
(reshaping firm's firm's dependence
competitive scope)
Learning & Develop New build their own knowledge base, gain capabilities the
capabilities to: firm doesn't already possess
melding two disparate corp cultures, resolve
Integration challenges
problems regarding the status of the newly acquired
include:
firm's executives
Due Diligence process of evaluating a target firm for acquisition
Financing of intended transaction, differences in
Evaluation requires
culture between firms, tax consequences of
examining:
transactions
Increase likelihood of bankruptcy, lead to a
Large Amounts of Debt
downgrade of firm's credit rating, preclude investment
can:
in activities that contribute to firm's long-term success
When assets are worth more when used in
Synergy conjunction with each other than when they are used
separately (1+1=3)
Private Synergy idea of a perfect match
performance drops; curvilinear relationship between
Too much diversification:
diversification and performance
https://quizlet.com/1062589140/busi-4940-exam-3-2025-complete-exam-questions-and-accurate-answers-already-passed-flash-cards/?new 2/6
