ABC Corporation operates hotels and restaurants in the central business district of Makati City. It is aiming to acquire XYZ Inc. another corporation in Pampanga. This corporation runs small hostels. ABC offers to acquire XYZ by offering 100,000 ABC ordinary shares valued at P12,000,000. 1. Kind according to purpose (Choose 1) a. Horizontal b. Vertical c. Product Extention d. Market Extension e. Congeneric f. Conglomerate 2. Kind according to approach to the target firm (Choose 1) a. Friendly b. Hostile 3. Kind according to acquisition mode (Choose 1) a. Cash b. Equity swap c. Mix of cash and equity swap
ABC Corporation operates hotels and restaurants in the central business district of Makati City. It is aiming to acquire XYZ Inc. another corporation in Pampanga. This corporation runs small hostels. ABC offers to acquire XYZ by offering 100,000 ABC ordinary shares valued at P12,000,000. 1. Kind according to purpose (Choose 1) a. Horizontal b. Vertical c. Product Extention d. Market Extension e. Congeneric f. Conglomerate 2. Kind according to approach to the target firm (Choose 1) a. Friendly b. Hostile 3. Kind according to acquisition mode (Choose 1) a. Cash b. Equity swap c. Mix of cash and equity swap
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corporation operates hotels and restaurants in the central business district of Makati City. It is aiming to acquire XYZ Inc. another corporation in Pampanga. This corporation runs small hostels. ABC offers to acquire XYZ by offering 100,000 ABC ordinary shares valued at P12,000,000.
1. Kind according to purpose (Choose 1)
a. Horizontal
b. Vertical
c. Product Extention
d. Market Extension
e. Congeneric
f. Conglomerate
2. Kind according to approach to the target firm (Choose 1)
a. Friendly
b. Hostile
3. Kind according to acquisition mode (Choose 1)
a. Cash
b. Equity swap
c. Mix of cash and equity swap
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