2. 1. Corporations that grow through buying other corporations are growing via which of the below strategies:
A. Organic
B. Acquisition
C. Divestiture
D. Spin-out
E. All of the above
2.Why do corporations acquire other corporations?
A . Strengthen brand
B. Cost synergies
C. Operating synergies
D. Improvements to human capital
E. All of the above
3. "Glamour acquisitions" are generally
A. That result in above-average results
B. That result in below-average results
C. That result in average results
D .All of the above
3. 4.What are some methods corporations and analysts use to measure the success of an acquisition ?
A. Internal rate of return
B. Return on investment
C. Cash on cash return
D. Net present value
E. All of the above
5 . What is the difference between a merger and an acquisition?
A. No real difference—the terms are synonymous
B. An acquisition is a merger involving a hostile takeover
C. In a merger, there is never any acquirer or target—two companies simply fuse
D. A merger is a type of acquisition in which the acquirer and the target combine to become one legal entity