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LOS d: Discuss the relation between merger motivations and types of mergers based on industry lifecycles.
Q1. Firms are most likely to seek mergers in order to gain access to capital during which industry lifecycle stages?
A) Pioneer/Development and Decline.
B) Pioneer/Development and Rapid Growth.
C) Rapid Growth and Mature Growth.
Q2. When an industry has reached the stabilization stage, the most common type of merger is:
A) vertical.
B) horizontal.
C) conglomerate.
Q3. Conglomerate mergers are least likely for companies in which stages of the industry lifecycle?
A) Mature Growth, Stabilization.
B) Stabilization, Decline.
C) Pioneer/Development, Rapid Growth.
Q4. The Larson Trust holds a broad portfolio of firms. One of the Trust’s holdings, Music World, is growing at roughly the same, or slightly slower rate as the overall economy. The Trust is considering selling the firm. What stage of the industry lifecycle is Music World most likely in, and which method of selling the firm is most probable?
A) Decline phase, divestiture.
B) Stabilization phase, divestiture.
C) Stabilization phase, equity carve-out.
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发表于 2009-3-3 15:44
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