Here, we have brought a mergers and acquisitions Quiz for you. If you think you have enough knowledge of this subject, take our quiz and try to score as much as possible. In the end, you will not only test your knowledge but also learn a few things from here. Best of luck!
Economies of scope from applying existing resources to new uses, at little additional cost.
Revenue and marketing synergies from new, enhanced, or more efficient distribution.
Economies of scale effects from organizational learning. d) Economies of scale from doing away with duplication of fund.
Economies of scale from doing away with duplication of function between the two firms.
The acquisition of critical mass.
Hubris.
Empire building.
The acquisition of monopoly.
Vertical.
Horizontal.
Joint venture.
Conglomerate.
Target company equity.
Target company asset.
Target company liabilities.
Target company shares price premium.
It is a type of joint venture.
It is an acquisition in which a large acquirer has leverage through bargaining power over a small target.
It is an acquisition that is funded from a relatively large amount of debt.
It is an acquisition that is funded from a relatively low amount of debt.
No difference.
A merger is when one firm separates to become two.
A merger is when two firms combine and form a new legal entity.
A merger is when a firm changes its title.
Contributions are automatically rolled over into the ESPP of the current company.
The offering and purchase periods are cut off early, and just before the closing of the deal, a purchase is made.
None of these.
Can be changed into restricted stock units or stock appreciation rights. It depends on the terms of the stock plan.
They can be occurred earlier to align their grant price with the grant price of the acquirer’s options.
According to an exchange ratio, they can be rolled over into options in the acquirer.
If the options are still preserved after the deal, then there is no tax consequence, but if they would be cashed out directly to you, the payment has to be taxed as ordinary income.
If the options are still preserved after the deal, then there would be no tax consequence, but if they have been cashed out directly to you, then the payment has to be taxed as capital gain.
You would pay taxes on the full value of the options, both unvested and vested, as decided by a standard option-valuation model.
For better brand recognition.
To grow in size and bounce their rivals.
Because of increasing competition.