Top 150+ Solved Corporate Restructuring MCQ Questions Answer
Q. The sale of stock in wholly owned subsidiary via an IPO is referred as --------
a. Split up
b. Equity carve out
c. Counter tender offer
d. Lockup transaction
Q. The distribution of shares in a subsidiary to existing parent company's stockholder iscalled -----------
a. Spin off
b. Equity carve out
c. Counter tender offer
d. Lockup transaction
Q. Which of the following activities are commonly associated with takeover.
a. The acquisition of assets
b. Management buyout
c. Leveraged buyout
d. All the above
Q. If Microsoft were to acquire U.S.Airways, the acquisition would be classified as -------- acquisition.
a. Horizontal
b. Conglomerate
c. Vertical
d. Market extention
Q. A dissident group solicits votes in an attempt to replace existing management is called ------
a. Tender offer
b. Shareholders derivatives action
c. Proxy contest
d. Management freezout
Q. One of the most basic reason for a merger is --------
a. Enhance revenue
b. Increase competition
c. Cost reduction
d. Employee benefits
Q. When a building supply store acquires a lumber mill is called as a -----------acquisition.
a. horizontal
b. Vertical
c. Conglomerate
d. Longitudinal
Q. The complete obsorption of one company by another, where in the acquiring fir retains its identity and the acquired firm cease to exist as a separate entity is called ----------.
a. Merger
b. Consolidation
c. Spin off
d. divestiture
Q. A merger in which an entirely new firm is created and both the acquired and acquiring firm cease to exist is called ---------------
a. Merger
b. Consolidation
c. Spin off
d. divestiture
Q. The payments made by a firm to repurchase shares of its outstanding stock from an individual investors in an attempt to eliminate a potential unfriendly takeover is called as -----
a. Golden parachute
b. Standstill payment
c. Greenmail
d. Poison pill
Q. A financial device designed to make unfriendly takeover attempts financiallyunappealing, if not impossible is called ------------
a. Golden parachute
b. Standstill payment
c. Greenmail
d. Poison pill
Q. Generous compensation packages paid to a firm's top management in event of a takeoverreferred as ----------
a. Golden parachute
b. Standstill payment
c. Greenmail
d. Poison pill
Q. The ____________ process must involve a significant change in the management cultureof the acquired business.
a. Human Resource Management
b. Post-Merger Integration
c. General management integration
d. Product and service development.
Q. __________ are sought with an aim to trying to control the products and services feed bythe involved business.
a. Post-Merger Integration
b. Product and service development
c. Merger and Acquisition
d. Financial market value
Q. Management involves the ___________ of resources.
a. Utilisation
b. Analysis
c. Culture
d. Net Profit