Deck 1: Business Combinations and Restructuring Techniques

Question 1

_________ merger involves firm engaged in unrelated types of activities.

A)Vertical
B)Horizontal
C)Conglomerate
D)Demerger

Answer 1

Conglomerate

Question 2

When existing company is dissolved to form few new companies, it is called as ________

A)Sin off
B)Split off
C)Split up
D)All of the above

Answer 2

Split up

Question 3

__________means an acquirer takes over the control of the target company.

A)Joint Venture
B)Takeover
C)Disinvestment
D)Demerger

Answer 3

Takeover

Question 4

The ___________means changing the structure of an organization such as reducing the hierarchical levels.

A)Financial Restructuring
B)Organizational Restructuring
C)Corporate Restructuring
D)All of the above

Question 5

________parties work together or a single project for a finite period of time.

A)Strategic Alliance
B)Joint Venture
C)Disinvestment
D)Franchising

Question 6

__________means the action of an organization or government selling or liquidating an asset or subsidiary.

A)Merger
B)Joint Venture
C)Takeover
D)Disinvestment

Question 7

__________ is an arrangement whereby the assets of two or more companies come under the control of one company.

A)Merger
B)Buyout
C)Joint Venture
D)Demerger

Question 8

________may be defined as an arrangement where one party grants another party the right to use trade name.

A)Alliance
B)Franchising
C)Slump sale
D)Joint Venture

Question 9

________merger is a merger of two or more companies that compete in the same industry.

A)Vertical
B)Horizontal
C)Co generic
D)Conglomerate

Question 10

____________ helps a firm to grow and expand.

A)Corporate Restructuring
B)Merger
C)Takeover
D)Demerger

Question 11

In _________, company distributes its shareholding in subsidiary to its shareholders thereby not changing the ownership pattern.

A)Spin off
B)Split off
C)Split up
D)All of the above

Question 12

________ is the fusion of two or more existing companies.

A)Merger
B)Takeover
C)Bailout
D)Demerger

Question 13

Reverse Merger takes place when a healthy company merges with a financially ________company.

A)Weak
B)Strong
C)Merged
D)All of the above

Question 14

The company which is formed as a result of the merger is known as _______ company.

A)Amalgamating
B)Amalgamated
C)Bailout
D)Takeover

Question 15

The risks of investors can be __________through adequate transparency an disclosures.

A)Enhance
B)Increased
C)Minimized
D)Maximized

Question 16

___________ deals with Accounting for amalgamations.

A)Accounting Standard 14
B)Accounting Standard 11
C)Accounting Standard 13
D)Accounting Standard 12

Question 17

_________ plays an important role in survival of weak units.

A)Merger
B)Demerger
C)Disinvestment
D)Franchising

Question 18

__________ is the most important piece of restructuring and organizational change.

A)Structure for Success
B)Communication
C)Plan Ahead
D)Meet in the middle

Question 19

___________is levied on "Instruments".

A)Stamp duty
B)Custom duty
C)Excise duty
D)All of the above

Question 20

The Competition Act, 2002 regulates the various forms of business combinations through __________

A)Reserve Bank of India
B)SEBI Regulation
C)Competition Commission of India
D)All of the above

Question 21

A company in one country can be acquired by an entity (another company) from other countries is called __________

A)Cross Border Merger
B)Intra Border Merger
C)Poison Pill Merger
D)Demerger

Question 22

The tax relief under section 72A will be avail if the amalgamation is between ________

A)Sole Proprietor
B)Companies
C)Partnership Firm
D)All of the above

Question 23

Obtain an order of the court sanctioning the scheme of ________

A)Merger
B)Demerger
C)Takeover
D)Disinvestment

Question 24

Refusal by the _____________ to register a transfer is an important strategy to avert a takeover.

A)Board of Directors
B)Government
C)RBI
D)SEBI

Question 25

Financial, Accounting and Tax related matters inspire ___________ takeover.

A)Cross Border
B)Friendly
C)Hostile
D)Compulsory