M&A Chapter 3 Quiz - M&A Chapter 3 Quiz 1 All of the...

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M&A Chapter 3 Quiz

1 .   All of the following are commonly used takeover tactics , except for
a. Poison pills
b. Bear hug
c. Tender offer
d. Proxy contest
e. Litigation
Answer:  a .   Poison pills
2 .   According to the management entrenchment theory ,
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3 .   Which of the following factors often affects hostile takeover bids ?
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4 .   All of the following are true of a proxy contest except for
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5 .   Purchasing the target firm ’s stock in the open market is a commonly used tactic to achieve all o f the following except for
a. Acquiring a controlling interest in the target firm without making such actions public knowledge .
b. Lowering the average cost of acquiring the target firm ’s share s
c. Recovering the cost of an unsuccessful takeover attempt
d. Obtaining additional voting rights in the target firm
e. Strengthening the effectiveness of proxy contests
6 .   All of the following are true of tender offers except for
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7 .   Which of the following are common takeover tactics ?
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8 .   All of the following are true of poison pills except for
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9 .   The following takeover defenses are generally put in place by a firm before a takeover attempt is initiated .
a. Standstill agreements
b. Poison pills
c. Recapitalization
d. Corporate restructuring
e. Greenmail
10 .   The following takeover defenses are generally put in place by a firm after a takeover attempt is underway .
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11 .   Which of the following is true about so - called shark repellants ?
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12 .   Which of the following is true ? A hostile takeover attempt
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13 .   Which is true of the following ? A white knight
a . Is a group of dissident shareholders which side with the bidding firm
b . Is a group of the target firm ’ s current shareholders which side with management
c . Is a third party that is willing to acquire the target firm at the same price as the bidder but usually removes the target ’ s management
d . Is a firm which is viewed by management as a more appropriate suitor than the bidder
e . Is a firm that is willing to acquire only a large block of stock in the target firm
14 .   Which of the following factors influences corporate governance practices ?
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M&A Chapter 3 Quiz 1.All of the following are commonly used takeover tactics, except for a.Poison pills b.Bear hug c.Tender offer d.Proxy contest e.Litigation Answer: A
2.According to the management entrenchment theory,
3.Which of the following factors often affects hostile takeover bids?
4. All of the following are true of a proxy contest except for
5. Purchasing the target firm’s stock in the open market is a commonly used tactic to achieve all othe following except for f a.Acquiring a controlling interest in the target firm without making such actions public knowledge. b.Lowering the average cost of acquiring the target firm’s sharesc.Recovering the cost of an unsuccessful takeover attempt d.Obtaining additional voting rights in the target firm e.Strengthening the effectiveness of proxy contests Answer: A

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