Answers to Final Exams



Download 181.5 Kb.
Page17/33
Date21.11.2022
Size181.5 Kb.
#60007
1   ...   13   14   15   16   17   18   19   20   ...   33
Answers-to-Final-Exams
Answer = b: ($ 150,000 + $ 450,000 + $ 20,000 - $ 120,000) / 20,000 shares = $ 25.00



  1. Once a merger has been finalized, one of the primary responsibilities of senior executive management as it relates to post merger integration is to:

    1. Facilitate functional integration

    2. Develop personnel retention programs

    3. Lead change through communication

    4. Manage all of the integration projects

Answer = c: Senior leadership and executive will need to work hard at communicating what changes will take place, when and how they will get implemented. Mergers super-impose a lot of change on the organization and this must be coordinated and communicated throughout the company from above.

  1. One of the challenges within post merger integration is to retain key (essential) personnel. Which of the following might help retain key personnel?

      1. Assign personnel to new locations

      2. Invite personnel to management meetings

      3. Offer personnel severance packages

      4. Recruit personnel differently than normal

Answer = b: Having personnel participate in key meetings might help retain essential personnel. If people have some say in how management makes decisions, this softens the blow and also gives managers an important reality check to ensure they don’t depart.



  1. Which of the following can be used as a poison pill for preventing a merger and acquisition?

        1. Issuing special rights to shareholders

        2. Offering golden parachutes to executives

        3. Buying back all of the outstanding stock

        4. Adopting a super-majority for mergers

Answer = a: The so-called “poison pill” often takes the form of special rights issued to shareholders.



  1. Which of the following represents a change to the corporate charter, designed to discourage a change in management?

    1. Offering greenmail to selected shareholders

    2. Entering into a standstill agreement

    3. Going private through a leveraged buyout

    4. Staggering the terms of board members


Download 181.5 Kb.

Share with your friends:
1   ...   13   14   15   16   17   18   19   20   ...   33




The database is protected by copyright ©ininet.org 2024
send message

    Main page