Reference no: EM133370128
Question
1. Distinguish between internal and external expansion of a firm.
2. List four advantages of a business combination as compared to internal expansion.
3. What is the primary legal constraint on business combinations? Why does such a constraint exist?
4. Business combinations may be classified into three types based upon the relationships among the combining entities (e.g., combinations with suppliers, customers, competitors). Identify and define these types.
5. Distinguish among a statutory merger, a statutory consolidation, and a stock acquisition.
6. Define a tender offer and describe its use.
7. When stock is exchanged for stock in a business combination, how is the stock exchange ratio generally expressed?
8. Define some defensive measures used by target firms to avoid a takeover. Are these measures beneficial for shareholders?
9. Explain the potential advantages of a stock acquisition over an asset acquisition.
10. Explain the difference between an accretive and a dilutive acquisition.
11. When contingent consideration in an acquisition is based on the acquirer issuing its shares to the seller, how should this contingency be reflected on the acquisition date?
12. What are pro forma financial statements? What is their purpose?
13. How would a company determine whether goodwill has been impaired?