Finance Definitions: Merger, Tender Offers, and Takeovers
Not what you're looking for?
1) Name three of the ten Change Forces.
2) The greatest change force is technological changes - Is this true or false?
3) What is the difference between Merger and Tender Offer?
4) M&A activities include:
A) Joint Ventures
B) Divestitures
C) Carve-outs
D) Spin-offs
E) All of the above
5) Define what "Hostile Takeovers" are.
6) Name two characteristics that a firm may possess that make it vulnerable to a takeover.
7) The study of valuation is important for M&A because a major cause of acquisition failures is that the bidder pays too much. Is this true or false?
8) The leading methods used in the valuation include:
A) comparable companies or comparable transactions approach
B) spreadsheet approach
C) formula approach
D) All of the above
9) Valuation is central to the merger process? Is this true or false?
10) Firms should merge only if the value to shareholders will be enhanced. Is this true or false?
11) Internal control mechanisms for effective corporate governance include the board of directors, ownership concentration, and executive compensation. Is this true or false?
12) Outside control mechanisms for effective corporate governance include stock price performance, institutional investors, proxy contests, and takeovers. Is this true or false?
13) List three reasons why mergers fail.
Purchase this Solution
Solution Summary
Various finance definitions are explained.
Solution Preview
1) Three of ten driving forces of change are:
(i) Choice
(ii) Technological change
(iii) Lifestyle
2) True
3) A merger is combines two or more companies by offering securities of acquiring company to the stock holder of the acquired company. A merger is always friendly whereas a tender offer is a purchase of some or all shares of ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
Recent Feedback
- "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
- "thank you!"
- "Thank you again Jayant. You are super fast. "
- "Thank you Jayant. You are appreciated. "
- "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking