1. _________ merger involves firm engaged in unrelated types of activities.
Correct : C. Conglomerate
2. When existing company is dissolved to form few new companies, it is called as ________
Correct : C. Split up
3. __________means an acquirer takes over the control of the target company.
Correct : B. Takeover
4. The ___________means changing the structure of an organization such as reducing the
hierarchical levels.
Correct : B. Organizational Restructuring
5. ________parties work together or a single project for a finite period of time.
Correct : A. Strategic Alliance
6. __________means the action of an organization or government selling or liquidating an
asset or subsidiary.
Correct : D. Disinvestment
7. __________ is an arrangement whereby the assets of two or more companies come under
the control of one company.
Correct : A. Merger
8. ________may be defined as an arrangement where one party grants another party the right
to use trade name.
Correct : B. Franchising
9. ________merger is a merger of two or more companies that compete in the same industry.
Correct : B. Horizontal
10. ____________ helps a firm to grow and expand.
Correct : A. Corporate Restructuring
11. In _________, company distributes its shareholding in subsidiary to its shareholders
thereby not changing the ownership pattern.
Correct : A. Spin off
12. ________ is the fusion of two or more existing companies.
Correct : A. Merger
13. Reverse Merger takes place when a healthy company merges with a financially
________company.
Correct : A. Weak
14. The company which is formed as a result of the merger is known as _______ company.
Correct : B. Amalgamated
15. The risks of investors can be __________through adequate transparency an disclosures.
Correct : C. Minimized
16. ___________ deals with Accounting for amalgamations.
Correct : A. Accounting Standard 14
17. _________ plays an important role in survival of weak units.
Correct : A. Merger
18. __________ is the most important piece of restructuring and organizational change.
Correct : B. Communication
19. ___________is levied on “Instruments”.
Correct : A. Stamp duty
20. The Competition Act, 2002 regulates the various forms of business combinations through
__________
Correct : C. Competition Commission of India
21. A company in one country can be acquired by an entity (another company) from other
countries is called __________
Correct : A. Cross Border Merger
22. The tax relief under section 72A will be avail if the amalgamation is between ________
Correct : B. Companies
23. Obtain an order of the court sanctioning the scheme of ________
Correct : B. Demerger
24. Refusal by the _____________ to register a transfer is an important strategy to avert a
takeover.
Correct : A. Board of Directors
25. Financial, Accounting and Tax related matters inspire ___________ takeover.
Correct : A. Cross Border
26. __________ takes place when a profit-making parent company merges into a loss-making
subsidiary company.
Correct : A. Reverse Merger
27. __________ takeover is the takeover which is affected with the consent of target
company’s executives and management.
Correct : C. Friendly
28. A _________ offer is required to be made within 15 business days of the original tender
offer.
Correct : C. Competing
29. The Indian ____________ contains several provisions that deal with the taxation of
different categories of mergers and acquisitions.
Correct : B. Income Tax Act, 1961
30. Global takeovers are __________ processes.
Correct : B. Complex
31. ___________ is a disjoining or a separation of one or more units of a company to form a
new company independent from the original one.
Correct : C. Demerger
32. __________ attempts by target managers to defeat outstanding takeover proposals are
overt forms of takeover defences.
Correct : A. Takeover Defences
33. The main reason for _________ takeover is to attain monopoly.
Correct : B. Cross Border
34. Under _________ Strategy, the target company attempts to purchase the shares of the
raider company.
Correct : B. The Packman Defence
35. The _______ deals with the power of a company to acquire shares of another company.
Correct : A. Companies Act, 2013
36. The divestiture of major operating unit most conveted by the bidder- commonly known as
the ____________
Correct : B. Crown Jewel
37. The purchase of the business of an enterprise by another enterprise is known as ________
Correct : B. Acquisition
38. The defence mechanism being used is anti- takeover amendments to the company’s or
articles of association are known as ________
Correct : A. Shark repellents
39. When an acquirer company takeovers the control over the other company against the
wishes of targeted company’s management considered as ____________
Correct : C. Hostile Takeover
40. _____________ takeovers are substantial acquisition of shares in a financially weak
company not being a sick industrial company.
Correct : A. Bailout
41. ________ means an acquirer takes over the control of the target company.
Correct : A. Takeover
42. The Indian Stamp Act, 1899 provides for stamp duty on transfer/ issue of shares at the
rate of ______
Correct : B. 0.25%
43. ___________ helps to widen the growth opportunities for the company.
Correct : D. Diversification
44. _________ method is used in accounting for amalgamations in the nature of purchase.
Correct : C. Purchase
45. The note of every application filed with the Tribunal has to be given to the _________
Correct : B. Central Government
46. The scheme of merger and amalgamation is required to approved by ___________,
before it is filed with the High court.
Correct : A. Shareholders
47. A _______ offer may be made by an existing shareholder or an acquirer who holds no
shares in the target company.
Correct : A. Voluntary
48. A popular defence mechanism against hostile takeover bids is the creation of securities
called _________
Correct : C. Poison Pills
49. Permission of ______ is required for the issue of any security to a person resident outside
India.
Correct : A. RBI
50. _________ takeover is the takeover which is affected with the consent of target’s
company executives and management.
Correct : B. Friendly
51. ___________ defines the various terms connected with takeover like acquirer,
acquisition, target company, etc.
Correct : A. Regulation 2
52. __________ should be in public interest.
Correct : A. Amalgamation
53. The _________ is the process of making changes in the composition of a firms one or
more business portfolio in order to have a more profitable enterprise.
Correct : A. Corporate Restructuring
54. ________ takes place when one company acquires control over other company by way of
purchase or exchange of shares.
Correct : C. Takeover
55. The Competition Act essentially considers _________ kinds of anti- competitive
agreements.
Correct : B. Two
56. The _____________ has exempted the payment of stamp duty on instrument evidencing
transfer of property between companies limited by shares.
Correct : B. Central Government
57. Amalgamated entities can assess to _______ number of market resources.
Correct : B. Larger
58. The risk of investors can be __________ through adequate transparency and disclosures.
Correct : A. Minimized
59. ___________ is the form of demerger where shareholders of existing company form a
new company to takeover specific division of existing company.
Correct : B. Split off
60. ___________ is a combination of two or more companies into an existing company.
Correct : A. Absorption
61. _________ helps in enhancing market leadership of the company.
Correct : C. Amalgamation
62. After meeting, the _________ of the meeting shall report the result thereof to the court.
Correct : A. Chairman
63. The company or companies which so merge being referred to as the _______ company or
companies.
Correct : B. Amalgamating
64. An existing company transfers its various divisions to one or more new companies
formed for the purpose, is said to be ______________
Correct : B. Complete demerger
65. _________ takes place when a healthy company merges with a financially weak
company.
Correct : A. Reverse Merger
66. _________may be defined as an arrangement where one party grants another party the
right to use trade name.
Correct : B. Franchising
67. A popular defence mechanism against hostile takeover bids is the creation of securities
called ___________
Correct : B. Poison Pills
68. _______ has laid down the guidelines for takeovers in order to protect the interest of the
small investors.
Correct : A. SEBI
69. A _________merger is a merger of business firms who are engaged into same line of
business.
Correct : A. Horizontal
70. The restructuring of companies by way of takeover is governed by _________
Correct : A. SEBI
71. ________ is a technique of corporate restructuring in which an independent company is
created from parent company in order to promote specialization.
Correct : B. Demerger
72. A ________is a combination of two or more companies into a new company.
Correct : A. Consolidation
73. _______ merger takes place upon the combination of two companies which are operating
in the same industry but at different stages of production or distribution system.
Correct : A. Vertical
74. __________is a venture in which an enterprise is formed with participation in the
ownership, control and management of minimum of two parties.
Correct : A. Joint Venture
75. -------- growth is through enhanced customer base, higher sales, increased revenue,
money material , machinery ect.
Correct : A. Organised
76. ----------growth provides an organisation with an aim of achieving accelerated or
increased growth through mergers, amalgamation ect.
Correct : B. Unorganised
77. A -------- merger is a merger of business firm engaged into same line of business.
Correct : A. horizontal
78. A ---------- merger is a merger of business firm engaged in different stages of production
in an industry.
Correct : B. Vertical
79. A ------------ is a merger of business firm who are engaged in unrelated business.
Correct : C. Conglomerate
80. The acquirer must have or needs to purchase more than -------% of the paid up equity capital of other company which the acquirer intended to overtake.
Correct : A. 50
81. ----------- has laid down the guidelines for takeovers in order to protect the interest of
small investors.
Correct : A. SEBI
82. ------------------- strategy involves a significant change in the financial structure of the
business firm.
Correct : A. Financial Restructuring
83. In stock swap merger the holder of target company's stock receive --------- of the
acquiring company's stock.
Correct : A. Shares
84. ------------- are commercial loans raised by eligible resident entities from reorganised nonresident entities.
Correct : A. External commercial borrowings
85. A---------- is the acquisition of a company or division of another company, financed with
the substantial portion of borrowed funds.
Correct : A. Leveraged buyout
86. When sick industries gets merged with healthy units with financial package is termed as-
-----
Correct : A. Financial rehabilitation
87. The ---------is prepared by insolvency resulation applicant and submitted to insolvency
professional who seek the consent of committee of creditors.
Correct : A. Insolvency resulation plan
88. A ---------- is a financial transaction in which a company is purchased with a combination
of equity and debt.
Correct : A. Leveraged buyout
89. In an------------------, the incumbent management team, acquires a sizeable portion of
shares of the company.
Correct : A. MBO
90. An ---------in which an external management team acquires the shares.
Correct : C. MBI
91. A---------- buyout is a form of leveraged buyout where both the buyer and the seller are
private equity firms.
Correct : B. Secondary
92. If a company that was acquired in a secondary buyout get sold to another financial
sponsor is called a ----------- buyout.
Correct : C. Tertiary
93. For a company, a ----------- is a process by which restructuring takesplace and surplus
cash is returned to shareholders.
Correct : A. Capital reorganisation
94. ------------- is a corporate action in which a company buy back its shares from the existing
shareholders usually at a price higher than market price.
Correct : A. Buy -Back
95. Before the buyback of shares, the company shall file with the Registrar of Companies a
letter of offer in e-form --------.
Correct : A. SH-8
96. The company shall file with the Registrar of Companies, along with the letter of offer,
and declaration of solvency in e-form --------------.
Correct : B. SH-9
97. A-------------- is a type of corporate action in which an acquiring company makes an offer to the target company's shareholders to buy the target company's shares to gain control of the business.
Correct : A. Takeover bid
98. The company shall maintain a register of buyback for shares and other securities in form
no.------------- at the registeredoffice of the company.
Correct : C. SH-10
99. The return of buyback shall be filed with the Registrar in form no. -----------
Correct : D. SH-11
100. ----------------of the company shall contain on enabling provision for buyback of shares.