Question : 72.The first U.S. merger wave, in 1897 was largely the : 1325816

 

 

72.The first U.S. merger wave, in 1897 was largely the result of

a.a backlash created by the anti-trust legislation of the 1890’s.

b.industrialization.

c.a growing emphasis on a truly national economy rather than a grouping of regional economies.

d.none of the above.

 

 

 

73.The push for “portfolio” corporations in the 1960’s was so great that the vast majority of mergers that took place during that time were

a.horizontal mergers.

b.vertical mergers.

c.conglomerate mergers.

d.none of the above.

 

 

 

74.The merger wave of the 1980’s was different from other merger waves because

a.of the availability of low quality debt financing.

b.of the need for further conglomerates during that time.

c.of the highly scrutinized process by the department of justice during that time.

d.none of the above.

 

 

 

75.Which piece of legislation was enacted to prevent the formation of trusts?

a.the Clayton Act.

b.the Federal Trade Commissions Act.

c.the Sherman Antitrust Act.

d.the Celler-Kefauver Act.

 

 

 

76.The purchase of additional resources by a business enterprise is known as a(n):

a.statutory merger

b.subsidiary merger

c.acquisition

d.consolidation

e.takeover

 

 

 

77.A merger in which both the acquirer and target disappear as separate corporations, combining to form an entirely new corporation with new common stock is known as a(n):

a.statutory merger

b.subsidiary merger

c.acquisition

d.consolidation

e.takeover

 

 

 

78.Which of the following statements is false?

a.Most acquisitions are hostile.

b.Even is a bid is considered hostile, ultimately over half of those bids are successful.

c.Hostile takeovers peaked in the 1980s.

d.Hostile takeovers are more rare in other countries than they are in the United States.

 

 

 

79.A finely tuned measure of business concentration that examines how a firm concentrates its efforts on its core business is known as:

a.conglomerate classification

b.corporate focus

c.diversification focus

d.primary classification

e.Standard Industry Classification

 

 

 

80.Which of the following statements is false?

a.Bidders almost always offer target firm shareholders a premium price for their stock.

b.The average premium for completed U.S. mergers for the last 30 years has averaged about 20%.

c.Premiums exist for mergers in many other countries in addition to the U.S.

d.The merger premium is the difference between pre-merger market value and acquisition value.

 

 

 

81.One benefit of external expansion is:

a.Acquirers are able to purchase the firm at a substantial discount from market value.

b.It slows down the expansion compared to a Greenfield entry and allows the firm more time to evaluate the potential of the expansion.

c.that it may help reduce potential problems associated with greenfield entry.

d.All of the above are benefits of external expansion.

e.Only (a) and (c) are benefits of external expansion.

 

 

 

 

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