ge4 - GEB 3373 Fall 2010 Final Exam FORM A Name _ You may...

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GEB 3373 FORM A Fall 2010 Final Exam Name ______________________________________________ You may take this exam with you after turning in your Scantron . Circle on the exam and bubble in the letter on your scantron representing the single best answer to each question (0.6333 points each). 1. Who usually benefits the most from the acquisition premium generated during an acquisition? a. The shareholders of the acquiring firm b. The employees of the acquiring firm c. The shareholders of the target firm d. The employees of the target firm e. In an efficient market, there can be no acquisition premium because assets are fairly priced. 2. In the case “The LG-Nortel Joint Venture,” the primary source of potential value creation can be described as coming from a. Reducing costs, risks, and uncertainties. b. Creating real options. c. Combining complementary assets and capabilities. d. Having a Chairman (MacKinnon) with great sensitivity and people skills. e. Nortel’s ownership of 50% plus one share of the equity in the JV. 3. Environmental groups or fair labor practice groups that challenge firms to maintain high standards are examples of: a. Primary stakeholder groups b. Secondary stakeholder groups c. Shareholders d. CSRs e. Anarchists 4. Which of the following is NOT true? a. Many acquisitions probably would be better off had firms pursued alliances first. b. Compared with acquisitions, alliances cost less and allow opportunities to learn from working with each other before engaging in full-blown acquisition. c. Acquisitions are often one-off deals, swallowing both the excellent capabilities and mediocre units of target firms. 1
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GEB 3373 FORM A Fall 2010 Final Exam Name ______________________________________________ d. Few firms have established a combined “mergers, acquisitions, and alliances function. e. All of the the above answers are true 5. Advocates who defend CSR would most likely argue: a. That increased regulation and standards may force firms to innovate, and thus add to the competitiveness of an industry. b. That regulation leads to higher costs and reduced competitiveness. c. That the amount of competition in an industry would remain unchanged, but the industry would experience tighter profit margins as they matched new regulations. d. That competition will remain unchanged but profits will increase. e. That increased regulation and standards will drive the least competitive firms from the industry, thus ensuring the survival of the stronger firms. 6. In the Fair Trade, Fair Profit video, the main message of the five vignettes was a. NGOs can practice social responsibility easier than MNEs can because they are able to transfer the costs of their actions to the MNEs. b.
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ge4 - GEB 3373 Fall 2010 Final Exam FORM A Name _ You may...

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