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标题: Reading 35: Mergers and Acquisitions - LOS a ~ Q6-10 [打印本页]

作者: cfaedu    时间: 2008-5-19 13:48     标题: [2008] Session 9 -Reading 35: Mergers and Acquisitions - LOS a ~ Q6-10

6.A conglomerate is most likely to participate in which type of merger?

A)   Vertical merger.

B)   Diversifying merger.

C)   Horizontal merger.

D)   Integrating merger.

7.Which of the following is NOT a commonly used merger classification describing forms of integration?

A)   Consolidation.

B)   Statutory merger.

C)   Regulatory merger.

D)   Subsidiary merger.

8.Suppose that a manufacturer of steel bridge beams (BridgeCo) acquires its main supplier of the steel (SteelCo) used to make the beams. After the merger is completed, the only surviving entity is BridgeCo. This is best described as a:

A)   horizontal merger.

B)   subsidiary merger.

C)   conglomerate merger.

D)   vertical merger.

9.A combination of two firms in entirely different industries is called a:

A)   horizontal merger.

B)   vertical merger.

C)   congeneric merger.

D)   conglomerate merger.

10. Burger World is interested in obtaining a controlling interest in Snappy Auto Repair. This potential merger is best described as a:

A)   horizontal merger.

B)   vertical merger.

C)   diagonal merger.

D)   conglomerate.


作者: cfaedu    时间: 2008-5-19 13:48

答案和详解如下:

6.A conglomerate is most likely to participate in which type of merger?

A)   Vertical merger.

B)   Diversifying merger.

C)   Horizontal merger.

D)   Integrating merger.

The correct answer was B)

Conglomerates by definition invest in unrelated business lines.

7.Which of the following is NOT a commonly used merger classification describing forms of integration?

A)   Consolidation.

B)   Statutory merger.

C)   Regulatory merger.

D)   Subsidiary merger.

The correct answer was C)

Regulatory merger is not a commonly used merger classification. The other answers are commonly used to describe the form of integration following a merger.

8.Suppose that a manufacturer of steel bridge beams (BridgeCo) acquires its main supplier of the steel (SteelCo) used to make the beams. After the merger is completed, the only surviving entity is BridgeCo. This is best described as a:

A)   horizontal merger.

B)   subsidiary merger.

C)   conglomerate merger.

D)   vertical merger.

The correct answer was D)

This is best described as a vertical merger, since BridgeCo is purchasing a company from which it gets production inputs. It could also be described as a statutory merger, since only the acquiring firm is in existence following the combination.

9.A combination of two firms in entirely different industries is called a:

A)   horizontal merger.

B)   vertical merger.

C)   congeneric merger.

D)   conglomerate merger.

The correct answer was D)

When two firms in entirely different industries merge, it is called a conglomerate merger.

10. Burger World is interested in obtaining a controlling interest in Snappy Auto Repair. This potential merger is best described as a:

A)   horizontal merger.

B)   vertical merger.

C)   diagonal merger.

D)   conglomerate.

The correct answer was D)

Combining firms in separate industries represents a conglomerate merger.






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