Reference no: EM132984929

Problem 1: The second wave of M&A activity was characterized by ___________ mergers.

a. Vertical

b. horizontal

c. conglomerate

Problem 2: One of the reasons behind General Electric's successful diversification strategy has been:

a. General Electric has acquired smaller firms to capture greater market share.

b. General Electric has acquired large firms in high-tech industries

c. General Electric has acquired large firms with poor performance in different industries

d. General Electric sought to acquire leading positions in the various industries

Problem 3: Diversification means

a. Significant growth in company's market share

b. All of these are correct

c. Rapid growth in a business's operating revenue

d. Growing outside a company's current industry category.

Problem 4: In the long run, a successful acquisition is one that:

a. Enables the acquirer to diversify its asset base.

b. Increases financial leverage

c. Enables the acquirer to make an all equity purchase, thereby avoiding additional financial leverage.

d. Increases the market price of the acquirer's stock over what it would have been without the acquisition.