External Growth In Business: Mergers And Takeovers Quiz

13 Questions | Total Attempts: 88

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Business Finance Quizzes & Trivia

Questions and Answers
  • 1. 
    What is a merger also commonly known as?
    • A. 

      Amalgamation

    • B. 

      Friendly Takeover

    • C. 

      One Direction

    • D. 

      Hostile Takeover

  • 2. 
    What is the dominant feature of a merger? 
    • A. 

      A minimum of two companies agreeing to join together to work with each other as a team and share resources as one large company.

    • B. 

      One company buying control of another to have complete power over the new entity.

    • C. 

      A takeover that company management tries to block by persuading its shareholders not to sell.

  • 3. 
    What is the dominant feature of a takeover?
    • A. 

      A minimum of two companies agreeing to join together to work with each other as a team and share resources as one large company.

    • B. 

      One company buying control of another to have complete power over the new entity.

    • C. 

      A takeover that company management tries to block by persuading its shareholders not to sell.

  • 4. 
    What are the benefits of a merger? [there is more than one answer]
    • A. 

      Combined premises

    • B. 

      New premises

    • C. 

      Combined equipment

    • D. 

      New equipment

    • E. 

      Combined products

    • F. 

      New products

    • G. 

      Combined staff

    • H. 

      New staff

  • 5. 
    What are the benefits of a takeover? [there is more than one answer]
    • A. 

      Combined premises

    • B. 

      New premises

    • C. 

      Combined equipment

    • D. 

      New equipment

    • E. 

      Combined products

    • F. 

      New products

    • G. 

      Combined staff

    • H. 

      New staff

  • 6. 
    Did Exxon and Mobil have a successful merger in 1999?
    • A. 

      True

    • B. 

      False

  • 7. 
    Did Daimler-Benz and Chrysler have a successful merger in 1998?
    • A. 

      True

    • B. 

      False

  • 8. 
    What was considered one of the worst amicable [friendly] takeovers in history?
    • A. 

      Kraft Foods’ takeover of Cadbury in 2009.

    • B. 

      Royal Bank of Scotland's takeover of ABN Amro in 2007.

    • C. 

      Exxon and Mobil in 1999.

    • D. 

      Daimler-Benz and Chrysler in 1998.

  • 9. 
    What are the advantages of merging with or taking over another business?
    • A. 

      Respect.

    • B. 

      Free Sky TV.

    • C. 

      Cheaper Costs.

    • D. 

      Destroy Competition.

    • E. 

      Tuck Shop Vouchers.

    • F. 

      One Direction.

    • G. 

      Speed.

  • 10. 
    What are the benefits of growth for the company? [there is more than one answer]
    • A. 

      Higher Profits

    • B. 

      More Products.

    • C. 

      Better Economies of Scale.

    • D. 

      Market Power.

    • E. 

      Lower Prices.

    • F. 

      More Employment.

    • G. 

      Better Services.

    • H. 

      Lowered Risk.

    • I. 

      Supplier Control.

  • 11. 
    What are the benefits of growth for society? [there is more than one answer]
    • A. 

      More Products.

    • B. 

      Higher Profits.

    • C. 

      Better Economies of Scale.

    • D. 

      Market Power.

    • E. 

      Lowered Risk.

    • F. 

      Supplier Control.

    • G. 

      Lower Prices.

    • H. 

      More Employment.

    • I. 

      Better Services.

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