Question : 11.Which one motive for M&A which does not necessarily increase : 1332193

 

11.Which is one motive for M&A which does not necessarily increase shareholder value?

a.Synergistic.

b.Hubris.

c.Performance.

d.A and C above.

e.None of the above.

12.Corporate scope is shaped by:

a.Industry conditions.

b.Firm capabilities.

c.Institutional constraints.

d.Opportunities in both developed and emerging economies.

e.All of the above.

13.Product-related diversification involves all of the following except:

a.A single business strategy.

b.Entries into activities that are related to a firm’s existing markets and/or activities.

c.The emphasis is on economies of scale rather than scope.

d.Increases in competitiveness.

e.Synergy.

14.Sources of operation synergy:

a.Technologies.

b.Marketing.

c.Manufacturing.

d.All of the above.

e.None of the above.

15.Diversification can pay off in all of the following situations except:

a.Risk is spread over several (product or country) markets.

b.Core resources are leveraged.

c.The art of post-acquisition integration has been mastered.

d.Commonly shared industry skills are used.

e.Firms are organized to minimize the costs.

16.The following managerial motives for conglomerations do not benefit shareholders except:

a.Norms.

b.Reducing managers’ employment risk.

c.Organizational stability.

d.Pursuing power, prestige, and income.

e.Empire building.

17.Which of the following is true regarding M&As?

a.As many as 70 percent of M&As reportedly fail.

b.On average, the acquiring firms’ performance improves after acquisitions.

c.Target firms, after being acquired and becoming internal units, often perform better than when they were independent, stand-alone firms.

d.The only identifiable losers are the shareholders of target (acquired) firms.

e.The outstanding success of M&As is due to pre- and post acquisition phases.

18.To ensure the success of the M&A, managers need to make sure of all the following except:

a.Be willing to walk out when premiums are too high.

b.Engage in adequate due diligence concerning strategic fit.

c.Seek organizational contrast and variety rather than organizational fit.

d.Address the concerns of multiple stakeholders.

e.Recognize that that integration management is a fulltime job.

19.Which is true regarding restructuring?

a.There are two primary ways of restructuring namely downsizing and upsizing.

b.A rising level of competition within an industry normally prevents restructuring.

c.Corporate restructuring is not widely embraced around the world.

d.Restructuring is one of the first things to consider when trying to improve profitability.

e.Restructuring is easier in knowledge-intensive firms than capital intensive firms.

20.Which is true of relatedness?

a.Measurement of product relatedness is no longer debatable.

b.A “product-related” firm will be considered related regardless of the measure used.

c.Some argue that product relatedness refers specifically to the visible product linkages.

d.Relatedness can be a common underlying dominant logic that connects various    businesses in a diversified firm.

e.Product-unrelated conglomerates are not linked by institutional relatedness.

 

 

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