BUSI 4940 EXAM 3 REVIEW QUESTIONS WITH CORRECT ANSWERS ALL VERIFIED BY AN EXPERT A+ GRADED (LATEST UPDATE)
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Course
Mgmt
Institution
Mgmt
Corporate level is concerned with - ANS Diversification
Merger - ANS 2 firms agree to integrate their operations on a relatively co-equal basis to create another NEW firm
Acquisition - ANS One firm buys a controlling (100% interest) in another firm with the intent of making the acquired...
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BUSI 4940 EXAM 3 REVIEW
QUESTIONS WITH CORRECT
YC
ANSWERS ALL VERIFIED BY
AN EXPERT A+ GRADED
D
(LATEST UPDATE)
U
ST
Corporate level is concerned with - ANS Diversification
, Merger - ANS 2 firms agree to integrate their operations on a relatively co-equal basis to
create another NEW firm
Acquisition - ANS One firm buys a controlling (100% interest) in another firm with the intent of
making the acquired firm a subsidiary business w/in its portfolio (amazon buying whole foods)
Takeover - ANS Acquisition in which the target firm did not solicit the acquiring firm's bid for
outright ownership
Increased Market Power occurs when: - ANS ability to sell goods above competitive levels,
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costs of activities below competitors, a firm's size
Acquisitions intended to increase market power are subject to: - ANS Regulatory review and
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analysis by financial markets
Market power is increased by: - ANS Horizontal acquisitions, Vertical Acquisitions, Related
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acquisitions
Entry Barriers - ANS factors associated w a company's ability to engage immediate access in a
specific market
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Cross-Border Acquisitions - ANS acquisitions made between firms with headquarters in
different countries
Firms acquire (buy) because: - ANS cost of new product development is high, desire an
increased speed to enter product market (FB buying Insta)
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Lower risk compared to Developing new products - ANS managers view acquisitions as low
risk, acquisitions discourgae innovation
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All diversification can be implemented through acquisitions and ____ risk - ANS mitigate
An acquisition can: (reshaping firm's competitive scope) - ANS reduce negative effect of an
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intense rivalry, reduce a firm's dependence
Learning & Develop New capabilities to: - ANS build their own knowledge base, gain
capabilities the firm doesn't already possess
Integration challenges include: - ANS melding two disparate corp cultures, resolve problems
regarding the status of the newly acquired firm's executives
Due Diligence - ANS process of evaluating a target firm for acquisition
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