Academics and practitioners have identified several major reasons that drive firms' merger, acquisition, and breakup decisions. Answer
Fantastic news! We've Found the answer you've been seeking!
Question:
Academics and practitioners have identified several major reasons that drive firms' merger, acquisition, and breakup decisions.
Answer choices for 1st part: diversification, managers' personal incentives, breakup value, or tax considerations
Answer choices for 2nd part: diversification, synergy, breakup value, or managers' personal incentives
Answer choices for 3rd part: diversification, managers' personal incentives, breakup value, or tax considerations
Answer choices for 4th part: managers' personal incentives, breakup value, synergy, or tax considerations.
Transcribed Image Text:
Academics and practitioners have identified several major reasons that drive firms' merger, acquisition, and breakup decisions. Correctly identify the term or motive for the merger and acquisition with its description. Description Term or Motive for Merger An acquirer buys a firm, liquidates it, and turns a handsome profit because the value of the firm's individual parts (if sold off separately) is greater than its current market value. A firm acquires a foreign subsidiary in an effort to stabilize earnings. During the 1980s, Hallmark acquired Binney & Smith (manufacturers of Crayola Crayons and Magic Markers) and Univision (a Spanish-language TV network) to expand its line of products in different segments and protect against the seasonal nature of its core greeting card business. In January 2006, Adidas-Salomon AG, often referred to as Adidas, acquired US Reebok International Ltd., which helped them capitalize on Reebok's specialty products and become a dominant player in the women's apparel market. This gave Adidas increased market power and cost efficiencies to compete with Nike. Academics and practitioners have identified several major reasons that drive firms' merger, acquisition, and breakup decisions. Correctly identify the term or motive for the merger and acquisition with its description. Description Term or Motive for Merger An acquirer buys a firm, liquidates it, and turns a handsome profit because the value of the firm's individual parts (if sold off separately) is greater than its current market value. A firm acquires a foreign subsidiary in an effort to stabilize earnings. During the 1980s, Hallmark acquired Binney & Smith (manufacturers of Crayola Crayons and Magic Markers) and Univision (a Spanish-language TV network) to expand its line of products in different segments and protect against the seasonal nature of its core greeting card business. In January 2006, Adidas-Salomon AG, often referred to as Adidas, acquired US Reebok International Ltd., which helped them capitalize on Reebok's specialty products and become a dominant player in the women's apparel market. This gave Adidas increased market power and cost efficiencies to compete with Nike.
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Breakup value as thats the case where company was able to sell one part ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Answer true or false for below Exercises. 1. The absolute value of a number is always a positive number. 2. Zero is always less than a positive number. 3. Given the number line is it true that b 6...
-
Answer choices or true or false 20. Most individual crime-fighter portraits come not from traditional news but from either pure entertainment content or infotainment products. 21. Reality police...
-
For a given value m1 for the cart mass, determine the value m2 for the cylinder mass which results in equilibrium of the system. Neglect all friction. Evaluate your expression for ? = 7, 48, and 76.
-
Why do we use the absolute value of x or of g(x) in the derivative formulas for the natural logarithm?
-
Gold Corporation, a calendar year C corporation, was formed in 2009 and has been profitable until the current year. In 2015, Gold incurs a net operating loss. Identify the issues that Gold...
-
1. Describe the situation at Lehman Brothers from an ethics perspective. Whats your opinion of what happened here? 2. What was the culture at Lehman Brothers like? How did this culture contribute to...
-
Verify that in Example 9.6 the momentum transferred to the ball by the gravitational force is \(\Delta p_{x}=m_{\mathrm{b}}\left(v_{x, \mathrm{f}}-v_{x, \mathrm{i}} ight)\). Data from Example 9.6 A...
-
Presented below is a list of items that could be included in the intangible assets section of the balance sheet. 1. Cost of purchasing a patent from an inventor. 2. Unrecovered costs of a successful...
-
1. What is Stock Market Analysis. Explain in Detail? 2. Discuss about Nature and Scope of Stock Market Analysis. 3. Discuss about Basics of Stock Market Analysis. 4. What is Investment? Explain in...
-
Play the following games in the Games Fair: Three Prize Roller Word Scramble Marble Draw Ten Spinner For each Games Fair game, answer the following questions: Create the probability distribution in a...
-
1: What are the trends of customer relationship management? (1 point) 2: List the fundamental processes of e-Commerce (1 point) 3: Differentiate between B2C and B2B e-Commerce systems in detail. How...
-
Given the following code snippet, determine the Big O complexity. You may assume N has been declared and initialized, and the code compiles and executes with no errors. int sum = 0; for (int i = 1; i
-
1) Lerner Company had the following transactions in 2015, its first year of operations. Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00 per...
-
5. Draw a set of coordinate axes on a piece of graph paper. Label the x axisOutput (0 to 20 units) and the y axis Cost (0 to 20 units). Plot the following (x, y) points on your graph: (0, 4); (2, 6);...
-
Emily, a single taxpayer, has determined her taxable income is $76,000. She also received interest from an investment in City bonds of $13,000 (municipal bonds), which are considered non-taxable for...
-
One of the key reasons for GAAP and the SEC is to ensure fair presentation and equal access to a publicly traded company's financial information. However, over the last few years, there have been...
-
describe the components of the custodial fund's asset and custodial funds liability in the consolidated columns ASSETS Total assets CONSOLIDATED STATEMENT OF FINANCIAL POSITION Cash and cash...
-
Juarez worked for Westarz Homes at construction sites for five years. Bever was a superintendent at construction sites, supervising subcontractors and moving trash from sites to landfills. He...
-
Using Mendels data from the experiment in Figure 2.8, conduct a chi square test to determine if the data agree with Mendels law of independent assortment. Mendels data: THE DATA P cross F1 generation...
-
How long did it take Mendel to complete the experiment in Figure 2.5? Figure 2.5 Experimental level P plants Tall Dwarf Note: The P cross produces seeds that are part of the Fi generation. Tall Self-...
-
On rare occasions, an organism may have three copies of a chromosome and therefore three copies of the genes on that chromosome (instead of the usual number of two copies). The alleles for each gene...
Study smarter with the SolutionInn App