What do you know about mergers and acquisitions? If you think you have enough knowledge of this subject, take our "Mergers and Acquisitions Quiz" and try to score as much as possible. Mergers and acquisitions (M&A) in corporate finance describe the financial transactions between two companies. This quiz asks basic questions about (M&A). At the end of the quiz, you will not only check your understanding of it 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
The acquisition of monopoly
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.
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.
Both A and B
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.
All of these options are correct.
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.
You would not 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
All of these
Here's an interesting quiz for you.