公司理财 习题库 Chap025.docVIP

CHAPTER 25 Mergers and Acquisitions I. DEFINITIONS MERGER a 1. The complete absorption of one company by another, wherein the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity, is called a: a. merger. b. consolidation. c. tender offer. d. spinoff. e. divestiture. CONSOLIDATION b 2. A merger in which an entirely new firm is created and both the acquired and acquiring firms cease to exist is called a: a. divestiture. b. consolidation. c. tender offer. d. spinoff. e. conglomeration. TENDER OFFER c 3. A public offer by one firm to directly buy the shares of another firm is called a: a. merger. b. consolidation. c. tender offer. d. spinoff. e. divestiture. HORIZONTAL ACQUISITION d 4. The acquisition of a firm in the same industry as the bidder is called a _____ acquisition. a. conglomerate b. forward c. backward d. horizontal e. vertical VERTICAL ACQUISITION e 5. The acquisition of a firm involved with a different production process stage than the bidder is called a _____ acquisition. a. conglomerate b. forward c. backward d. horizontal e. vertical CONGLOMERATE ACQUISITION a 6. The acquisition of a firm whose business is not related to that of the bidder is called a _____ acquisition. a. conglomerate b. forward c. backward d. horizontal e. vertical PROXY CONTEST b 7. An attempt to gain control of a firm by soliciting a sufficient number of stockholder votes to replace the current board of directors is called a: a. tender offer. b. proxy contest. c. going-private transaction. d. leveraged buyout. e. consolidation. GOING-PRIVATE TRANSACTION c 8. A business deal in which all publicly owned stock in a firm is replaced with complete equity ownership by a private group is called a: a. tender offer. b. proxy contest. c. going-private transaction. d. leveraged buyout. e. consolidation. LEVERAGED BUYOUT d 9. Going-private transactions in which a large percentage of the money used to buy the outs