Top 150+ Solved Strategic Financial Management MCQ Questions Answer
Q. If Microsoft were to acquire US Airways, the acquisition would be classified as a ,……..
a. Conglomerate
b. Vertical
c. Horizontal
d. Concentric
Q. The distribution of shares in a subsidiary to existing parent company’s stockholder is called ……
a. Bear hug
b. Spin off
c. Buy out
d. Split off
Q. ……. is the ratio in which an acquiring company will offer its own shares in exchange for the targetcompany’s share during merger .
a. Swap ratio
b. Price- earnings ratio
c. Exchange ratio
d. Enterprise value to sales ratio
Q. …….. isa type of takeover in which the acquiring company turns itself into a subsidiary of thepurchased company.
a. Bailout takeover
b. Reverse takeover
c. Backflip
d. Conglomerate
Q. PAC stands for…..
a. Persons acting on concert
b. Promoters acting in concert
c. Public announcement for consolidation
d. Public acting concert
Q. This strategy enables the existing shareholders of the target company to buy additional shares at ahigh discount rate.
a. Flip- in
b. Flip over
c. Spin out
d. Spin off.
Q. This plan gives veto rights over the controlof changes to managers.
a. Golden parachute
b. Poison pills
c. Dual class stock
d. Super majority announcements
Q. Whichof the following is a pre offer take-over defences?
a. Crown Jewel
b. People pill
c. Poison pill
d. PAC man defence
Q. Which of the following is a post offer take- over defence?
a. Poison pills
b. Golden parachute
c. White knight
d. Dual class stock
Q. The process by which company or organisation is divided and thereby becomes an independentbusiness is called …..
a. Spin out
b. Spin off
c. Split off
d. Sell off
Q. The process of converting a subsidiary into an independent entity is called….
a. Spin out
b. Split off
c. Sell off
d. Spin off
Q. LBO stands for….
a. Leveraged borrow outs
b. Leveraged buy outs
c. Leveraged buy offs
d. Longterm buy outs
Q. …..isan acquisition in which management team of the company purchases assets and operation theymanage.
a. LBO
b. MBO
c. Demerger
d. Stubs
Q. NOPAT stands for….
a. Net organisation profit after tax
b. Net operating profit after tax
c. Net operation profit after a term
d. None of the above