15. Which of the following are examples of business alliances? a. Mergers b. Acq
ID: 2806868 • Letter: 1
Question
15. Which of the following are examples of business alliances? a. Mergers b. Acquisitions C. d. Equity partnerships Joint ventures C and D 16. Antitrust regulatory authorities tend to look most favorably on which type of alliances? a. b. c. d. e. Equity partnerships Global alliances None of the above Marketing alliances among competitors Project oriented ventures involving collaborative research divestitures or equity carve-outs, the spin-off generally results in an infusion of cash to the parent company. True or False 18. Which of the following characteristics of a firm would limit the firm's attractiveness as a potential LBO candidate? b. d. e. All of the above Substantial tangible assets High reinvestment requirements High R&D; requirements B and C 19. Which of the following are commonly used sources of funding for leveraged buyouts? Secured debt Unsecured debt Preferred stock Seller financing All of the above a. b. d. 20, Which of the following is not true about mergers and acquisitions and taxes? Tax considerations and strategies are likely to have an important impact on how a deal is structured by affecting the amount, timing, and composition of the price offered to a target firm. Tax factors are likely to affect how the combined firms are organized following closing, as the tax ramifications of a corporate structure are quite different from those of a limited liability company or partnership c. Potential tax savings are often the primary motivation for an acquistion or merger b. d. Transactions may be either partly or entirely taxable to the target firm's shareholders or tax-free. b. None of the above
Explanation / Answer
In case of multiple questions allowed to answer the first 4 parts only. please put rest of the parts separately to get them answered
Answer 15: option E is the answer. alliance is something in which two independent companies comes together to use skills and resources of each other. equity partnerships and joint ventures both come under this
Answer 16: option D. many of the companies opt for this beacuse the investment cost is huge for them and regulators understand to come up with this collaboration is required
Answer 17: False. They do not result in cash infusion for the company. Parent company gives share on the pro rata basis to the existing shreholders in the form of special dividend.
Answer18: Option D is the answer. Business with high capital expenditure are least attractive for LBO
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