13-A Value-Neutral rationale for diversification would include each of the following EXCEPT:

Antitrust regulation

Tax laws

Increasing managerial compensation

Uncertain future cash flows

14-The rationale behind an equity strategic alliance as opposed to a nonequity strategic alliance is:

To create a new, legally independent company

To encourage tacit collusion between the firms

To make the partner relationship less formal

To show a commitment of the cooperation between the two companies

15-The primary goal of a private equity firm in an LBO is typically to:

Sell the company back to the market through an IPO

To allow managers to focus on developing innovations

To put a lot of debt on the companys balance sheet

To split up the company into multiple pieces