18/05/2018 Quiz: Hitt/Ireland/Hoskisson, Strategic Management: Concepts: Competitiveness and Globalization, 9e, Chapter 7

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Assignment Name: Hitt/Ireland/Hoskisson, Strategic Management: Concepts: Competitiveness and Globalization, 9e, Chapter
7

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All of the following are correct about cross-border acquisitions EXCEPT:

a. global M&A activity declined in the first half of 2009.

b. there was a significant increase in cross-border activity during the 1990s.

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c. global M&A activity grew in the first half of 2009.

d. cross-border acquisitions remain popular as a viable path to firm growth and strategic competitiveness.

status: not answered ()

correct: c
your answer:

Which of the following is NOT an attribute of a successful acquisition?

a. The acquiring firm has a large amount of financial slack.

b. Investments in advertising and image building are made quickly.

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c. The acquired and acquiring firms have complementary assets and/or resources.

d. Innovation and R&D investments continue as part of the firm's strategy.

status: not answered ()

correct: b
your answer:

3 Which of the following statements is FALSE?

a. Synergy resulting from an acquisition generates gains in shareholder wealth beyond what they could

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18/05/2018 Quiz: Hitt/Ireland/Hoskisson, Strategic Management: Concepts: Competitiveness and Globalization, 9e, Chapter 7

Summary of Results
achieve through diversification of their own portfolios.

b. Private synergy is more likely when the two firms in an acquisition have complementary assets.

c. Private synergy results when the combination of two firms yields competencies and capabilities that could
not be achieved by combining with any other firm.

d. Private synergy is easy for competitors to understand and imitate.

status: not answered ()

correct: d
your answer:

When managers become overly focused on making acquisitions, it is:

a. because acquisitions are a quick way to improve the financial standing of the firm.

b. due to pressure from major stakeholders to diversify the firm.

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c. because it is more fun to do deals than to run the company.

d. because the skills of top executives are better used in making acquisitions than they are in daily
organization operations.

status: not answered ()

correct: c
your answer:

When the target firm does not solicit the acquiring firm's bid, it is referred to as a(an):
a. adversarial acquisition.

b. leveraged buyout.
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c. stealth raid.

d. hostile takeover.

status: not answered ()

correct: d
your answer:

A friendly acquisition:
a. facilitates the integration of the acquired and acquiring firms.

b. enhances the complementarity of the two firms' assets.

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c. allows joint ventures to be developed.

d. raises the price that has to be paid for a firm.

status: not answered ()

correct: a
your answer:

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18/05/2018 Quiz: Hitt/Ireland/Hoskisson, Strategic Management: Concepts: Competitiveness and Globalization, 9e, Chapter 7

Summary of Results

Private synergy:
a. is assessed by managers during the due diligence process.

b. is not easy for competitors to understand and imitate.

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c. is frequently achieved in conglomerates.

d. occurs in most related acquisitions and allows firms to see increased returns.

status: not answered ()

correct: b
your answer:

Internal product development is often viewed as:

a. the only reliable method of generating new products for the firm.

b. critical to the success of biotech and pharmaceutical firms.

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c. a quicker method of product launch than acquisition of another firm.

d. carrying a high risk of failure.

status: not answered ()

correct: d
your answer:

A leveraged buyout refers to:

a. an action where the management of the firm and/or an external party buy all of the assets of a business
financed largely with equity.

b. a firm pursuing its core competencies by seeking to build a top management team that comes from a
similar background.
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c. a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and
takes the firm private.

d. a firm restructuring itself by selling off unrelated units of the company's portfolio.

status: not answered ()

correct: c
your answer:

Evidence suggests that firms using acquisitions as a substitute for internally developed innovations:
a. eventually encounter performance problems.

b. are able to offset the loss of research and development competencies by competencies in other areas.
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c. can leverage their core competencies across a broader range of products.

d. extend their time-to-market for new product launches.

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18/05/2018 Quiz: Hitt/Ireland/Hoskisson, Strategic Management: Concepts: Competitiveness and Globalization, 9e, Chapter 7

Summary of Results

status: not answered ()

correct: a
your answer:

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