QUESTION 13 Why the horizontal mergers are more carefully scrutinized by regulatory authorities, when compared to the conglomerate mergers? O Because horizontal mergers can be more directly associated to monopolistic practices O Because horizontal mergers can be more directly associated to tax evasion Because horizontal mergers are guided by game theory Because horizontal mergers are a previous step in performing conglomerate mergers

Q: 3. Discuss whether over-diversification is a consequence of corporate governance failure.

A: Corporate governance refers to the set of rules, policies, and procedures to self-control the firm…

Q: Which one of the following is not a characteristic of Modigliani-Miller Propositions with corporate…

A: MM proposition with tax: if tax is allowed, the firm increases its value with introducing debt…

Q: Why do most acquisitions fail to create shareholder value?

A: Mergers and acquisitions generally failed to create or add value for the shareholders because of…

Q: Describe briefly four (4) factors explaining why shareholders of acquiring companies rarely benefit…

A: Acquiring means one company come under the control of other for the purpose of increasing market…

Q: 21. Which of the following are generally true about wealth gains or losses to stockholders following…

A: Merger could make the companies or business more stronger through expanding the base of customer,…

Q: s TF.01.005 Question 33 of 37 A disadvantage of the corporate form of organization is that corporate…

A: A corporation is a legal entity separate from its owners, with limited liability and ownership…

Q: Which of the following statements is true? * Restrictive covenants in debt agreements are an…

A: A business is an organization entirely made for earning profits or for fulfilling social needs by…

Q: What does empirical evidence suggest about the distribution of gains from mergers? Shareholders of…

A: Gain from merger can be calculated by analyzing the change in the total equity value of company…

Q: Which of the following correctly characterizes the risks in merger arbitrage? O A. The strategy is…

A: Merger arbitrage is the process where an investor trades in the stock of the companies involved in…

Q: It is quite often we observe some firms takeover target firms from a different industry. If…

A: Diversified acquisition means those acquisitions in which the company acquires the other company to…

Q: Law on Partnership and Corporation What is the difference between mergers from consolidation?

A: Law on Partnership and Corporation deals with the firms and corporations. It includes all the rules,…

Q: Regardless of the legal agreements, technology licensing, and the like between two companies,…

A: Any of the circumstances stated below is regarded as proof of strong significant influence: Board…

Q: irms facing hostile takeovers often take actions to forestall the acquisition. For instance, in a…

A: Hostile takeovers refer to those acquisitions and takeovers in which the management of the company…

Q: Why so many mergers fail to produce the expected synergistic gains?

A: Merger:It is an agreement which unites two or more companies into a new company. It helps companies…

Q: a) What is a conglomerate merger and why are they more likely to be approved? b) Limit pricing is a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following statements is most CORRECT? Oa. The primary rationale for most operating…

A: A merger refers to the combination of two or more companies into a single entity. This typically…

Q: which of the following does not explain the poor performance of mergers and acquisitions ? i.…

A: Mergers and acquisitions, or M&A for short, involves the process of combining two companies into…

Q: Which of the following is NOT a consequence of the double tax on dividends?     Question 15…

A: Please find the answer to the above question below:

Q: Diversification is considered a dubious reason for merger because: Select one: a. Risk reduction is…

A: The following are some of the reasons why mergers are the goal of diversification are considered…

Q: What is the difference between a merger and a corporate alliance?

A: Merger is the process of combining two or more companies with the purpose of forming a new company.…

Q: Which of the follwing is not a mechanism to reduce agenct's undesirable behavior?   A. knowledge…

A: A principal-agent dilemma happens where the agent and the principal have a conflict of interest,…

Q: If stock market returns for merged firms are positive, which motives for horizontal merger would be…

A: The question is asking us to identify the motives for horizontal mergers that would be supported if…

Q: It is often difficult to draw a distinctive line between mergers and takeovers, and the terms tend…

A: A merger occurs when two businesses with roughly equal ranks join together under the agreement of…

Q: One of the main disadvantages of the corporate form is the a.double taxation of dividends…

A:

Q: Are managers of firms with formidable takeover defenses more or less likely to act in the…

A: Just like other jobs, management jobs are also at risk in the event of takeovers. So, the answer…

Q: Which of the following statements best describes the tipper/tippee theory? Multiple Choice This…

A: The tipper/tippee theory relates to insider trading. The tipper is the person who gives the…

Q: How does a merger allow a firm to circumvent tax laws?

A: Mergers are the business settings that allow a corporation to unite with another corporation and…

Q: Acquirer shareholder returns may be explained by: Multiple Choice cost reductions from operational…

A: The shareholders are those individual who invest in the business and their received the residual…

Q: What are horizontal, vertical, congeneric, andconglomerate mergers? Are the different typesof…

A: Horizontal merger: If two companies combine to achieve the organizational synergies in the same…

Q: reduce political risk

A: Political risk refers to those risk that arises due to the change in government body of a country.…

Q: Why might one company have to complete more due diligence than another in a merger? A. None of…

A: Due diligence under the process of merger allow the buyer for confirming the pertinent information…

Q: Which of the following LEAST accurately describes the advantages of specific types of mergers and…

A: Mergers and acquisitions (M&A) are business transactions in which two or more companies…

Q: Choose all that are not appropriate statements regarding business combinations and divestures. 1. A…

A: A business combination refers to the process where one business acquires control over one or more…

Q: Firms facing hostile takeovers often take actions to forestall the acquisition. For instance, a…

A: Hostile takeovers refer to those acquisitions and takeovers in which the management of the company…

Q: What options does a company have if its board or management is opposed to an acquisition, a merger,…

A: Companies can use any of these defensive strategies to oppose an acquisition, merger or a takeover…