ch7战略管理

Chapter 7—Acquisition and Restructuring StrategiesTRUE/FALSE1. A merger is defined as a transaction in which one firm purchases controlling interest inanother firm.ANS: F PTS: 1 DIF: Medium REF: 1842.Most acquisitions that are designed to achieve greater market power entail buying acompetitor, a supplier, a distributor, or a business in a highly related industry.ANS: T PTS: 1 DIF: Medium REF: 184-1853.An acquisition of a firm in a highly related industry is referred to as a horizontalacquisition.ANS: F PTS: 1 DIF: Medium REF: 1864.In most nations, regulations limiting acquisition activity has been strengthened.ANS: F PTS: 1 DIF: Hard REF: 187-1885.The reasons why a firm would overpay for a company that it acquires include inadequatedue diligence.ANS: T PTS: 1 DIF: Easy REF: 192-1936.Synergy is created by the efficiencies derived from economies of scale and economies ofscope and by sharing resources across the businesses in the merged firm.ANS: T PTS: 1 DIF: Easy REF: 1947.Acquisitions can become a substitute for innovation in some firms and trigger futurerounds of acquisitions.ANS: T PTS: 1 DIF: Medium REF: 195-1968.Restructuring refers to changes in the composition of a firm’s set of businesses or itsfinancial structure.ANS: T PTS: 1 DIF: Medium REF: 198MULTIPLE CHOICE1.Cross-border acquisitions involvea. acquisitions by firms from developing countries of firms in developed countries.b. acquisitions by firms from developed countries of firms in developing countries.c. acquisitions made by firms both within and between developed and developing countries.d. none of the above.ANS: C PTS: 1 DIF: Medium REF: 181-1822.In a mergera. two firms agree to integrate their operations on a relatively coequal basis.b. one firm buys controlling interest in another firm.c. two firms combine to create a third separate entity.d. one firm breaks into two firms.ANS: A PTS: 1 DIF: Easy REF: 1843.A(an) ____ occurs when one firm buys a controlling, or 100% interest, in another firm.a. mergerb. acquisitionc. spin-offd. restructuringANS: B PTS: 1 DIF: Medium REF: 1844.When the target firm’s managers oppose an acquisition, it is referred to as a(an)a. stealth raid.b. adversarial acquisition.c. leveraged buyout.d. hostile takeover.ANS: D PTS: 1 DIF: Easy REF: 1845.When a firm acquires its supplier, it is engaging in a(an)a. merger.b. unrelated acquisition.c. vertical acquisition.d. hostile takeover.ANS: C PTS: 1 DIF: Medium REF: 185-1866.Cross-border acquisitions are typically made toa. incr ease a firm’s market power.b. reduce the cost of new product development.c. take advantage of higher education levels of labor in developed countries.d. circumvent barriers to entry in another country.ANS: D PTS: 1 DIF: Medium REF: 187 | 181-182 7.Entering new markets through acquisitions of companies with new products is notrisk-free, especially if acquisition becomes a substitute fora. innovation.b. market discipline.c. risk analysis.d. international diversification.ANS: A PTS: 1 DIF: Medium REF: 1898.Without effective due diligence thea. acquiring firm is likely to overpay for an acquisition.b. firm may miss its opportunity to buy a well-matched company.c. acquisition may deteriorate into a hostile takeover, reducing the value creating potentialof the action.d. firm may be unable to act quickly and decisively in purchasing the target firm. ANS: A PTS: 1 DIF: Medium REF: 192-1939.Due diligence includes all of the following activities EXCEPT assessinga. differences in firm cultures.b. the level of private synergy between the two firms.c. tax consequences of the acquisition.d. the appropriate purchase price.ANS: C PTS: 1 DIF: Medium REF: 192-19310.The use of high levels of debt in acquisitions has contributed toa. the increase in above-average returns earned by acquiring firms.b. an increased risk of bankruptcy for acquiring firms.c. the confidence of the stock market in firms issuing junk bonds.d. an increase in investments that have long-term payoffs.ANS: B PTS: 1 DIF: Hard REF: 19311.One problem with becoming too large is that large firmsa. become excessively diverse and have difficulty focusing on strategic goals.b. usually increase bureaucratic controls.c. become attractive takeover targets.d. tend to have inadequate financial controls.ANS: B PTS: 1 DIF: Medium REF: 19612.A friendly acquisitiona. facilitates the integration of the acquired and acquiring firms.b. enhances the complementarity of the two firms’ assets.c. raises the price that has to be paid for a firm.d. allows joint ventures to be developed.ANS: A PTS: 1 DIF: Medium REF: 197。