Reference no: EM132020445

1. Which is not a concern when creating a joint venture:

A. They may fail because the Joint Venture partners do not work well together.

B. Venture partners may reluctant to share intellectual property or other proprietary knowlege.

C. A joint venture must be dissolved after 5 years.

D. All of the above.

2. In mergers of equals:

A. Directors of Bidder companies generally are better compensated than Directors of Target companies.

B. Directors of Target companies generally are better compensated than Directors of Bidder companies.

C. Directors of Bidder and Target companies generally are equally compensated.

D. There is no evidence that the Directors of either the Bidders or Target companies are unevenly compensated.

3. For a company with positive debt:

A. Enterprise value is less then equity value.

B. Enterprise value equals equity value.

C. Enterprise value is more than equity value.

D. None of the above.

4. The following factors will influence the initial potential dilution of earnings per share:

A. Differential in P/E ratios.

B. Relative size of the two firms as measured by earnings.

C. Taxability of target earnings.

D. Both a and b.