Reference no: EM131933747

1. Which of the following statements concerning mergers and acquisitions is true?

I. Mergers of firms of equal size usually have better outcomes than mergers of firms of different sizes

II. Acquisitions of small private firms usually result in better outcomes than acquisitions of public firms

III. Growth-based mergers are usually less successful than cost-based mergers

a.  I only

b.  I and II only

c. I and III only

d. II and III only

e.  I, II, and III

2. Which of the following statements is true concerning the use of mergers to reduce cyclicality and volatility?

I. The merger of large, public firms is a cost-effective way for shareholders to shed firm-specific risk due to cyclicality and volatility

II. The merger of a large firm with a small, private firm may reduce cyclicality and volatility risk for the small firm's owner.

III. Mergers that reduce cyclicality and volatility may still result in additional costs that outweigh the benefits

A. I only

B. I and II only

C. I and III only

D. II and III only

E. I, II, and III

F. None of the above

3. Which of the following requires shareholder approval from both firms?

I. A tender offer

II. A merger

III. A consolidation

A. I only

B. I and II only

C. I and III only

D. II and III only

E. I, II, and III

F. None of the above