1. Percentage of buyback of shares should not exceed --------- of the aggregate of the paid up capital and free reserves of the company.
Correct : A. 25%
2. Ratio of aggregate of secured and unsecured debt owned by the company after buyback should not be more than ---------the paid up capital and free reserves.
Correct : B. Twice
3. Declaration of solvency shall be signed by at least ------- directors one of whom shall be
the managing director.
Correct : A. 2
4. Letter of offer shall be dispatched to the shareholders within---------- days from its filing
with Registrar of Companies containing factual information.
Correct : A. 21
5. The offer for buyback shall remain open for minimum period of -------days.
Correct : B. 15
6. Every buyback shall be completed within a period of------------------- from the date of
passing of board or special resulation.
Correct : A. One year
7. Extinguish and physically destroy the shares and other specified securities buyback within ---- days of the last date of completion of a buyback.
Correct : D. 07
8. Shares to be bought back must be ---------
Correct : A. fully paid up
9. Approval of Board of directors upto ------ % of the total paid up equity capital and free
reserves of the company.
Correct : A. 10
10. ----------- growth provides an organisation with an aim of achieving accelerated or increased growth through mergers, amalgamation ect.
Correct : B. Inorganic
11. In -------- swap merger, the holders of the target company's stock receive shares of the
acquiring company's stock.
Correct : A. Stock
12. -------------------- Capital can be considered as the permanent capital of company.
Correct : A. Equity share
13. For companies that publicly traded,negative reactions to the restructure can result in -----
stock prices.
Correct : A. Dropping
14. --------- is a foreign currency denominated instrument tradeable on stock exchange
generally in USA.
Correct : A. ADRs
15. ----------- is a foreign currency denominated instrument tradeable on stock exchange in
countries other than USA.
Correct : B. GDRs
16. Well managed companies make sufficient profit and retain in the form of -----------.
Correct : A. Free Reserve
17. With ---------------- , lender can get a comprehensive financial footprint of a borrower.
Correct : A. Credit report
18. The restructuring of a corporation should be undertaken if ---------------
Correct : B. It is expected to create value for shareholders
19. In the long run, and successful acquisition is one that
Correct : C. Increase the market price of the acquirer stock
20. One means for a company to go private is ----------
Correct : C. LBO
21. Which of the following reason do companies restrucre for? ----------
Correct : C. To stay competitive
22. When one company buys all or parts of another company is called -----------.
Correct : D. Acquisition
23. An acquisition is the same thing as --------.
Correct : C. a takeover
24. The way in which merger and amalgamation occur do not include --------------
Correct : C. Diversification
25. The good reason for merger and amalgamation do not include -----------
Correct : B. Increasing earning per share
26. Justification for merger and amalgamation do not include ------------
Correct : C. to increase risk
27. Managerial motive for merger and amalgamation do not related to -------------
Correct : A. Dividend
28. The three broad approaches to company valuation do not include ------------.
Correct : C. Inventory valuation
29. ----------- in his book of 'Stategic Management 'has identified the strategy alternatives into four board strategies.
Correct : A. William F. Glueck
30. Merger or takeover may be provided for as a part of insolvency resulation plan under the
Insolvency and Bankruptcy Code, -----------
Correct : D. 2016
31. --------------does not result in a expansion of the firm.
Correct : C. Divestiture
32. ------------- does not involve a change in the ownership structure.
Correct : A. Proxy contest
33. -------------is referred as 'as going private transaction 'initiate by the incumbent management.
Correct : A. Management buyout
34. ----------- forms one economic unit from two or more units is called ----------
Correct : B. Merger
35. A public offer by one firm to directly buy the shares of another company is called --------
Correct : B. Tender offer
36. The sale of stock in wholly owned subsidiary via an IPO is referred as --------
Correct : B. Equity carve out
37. The distribution of shares in a subsidiary to existing parent company's stockholder is
called -----------
Correct : A. Spin off
38. Which of the following activities are commonly associated with takeover.
Correct : D. All the above
39. If Microsoft were to acquire U.S.Airways, the acquisition would be classified as -------- acquisition.
Correct : B. Conglomerate
40. A dissident group solicits votes in an attempt to replace existing management is called --
----
Correct : C. Proxy contest
41. One of the most basic reason for a merger is --------
Correct : C. Cost reduction
42. When a building supply store acquires a lumber mill is called as a -----------acquisition.
Correct : B. Vertical
43. The complete obsorption of one company by another, where in the acquiring fir retains its identity and the acquired firm cease to exist as a separate entity is called ----------.
Correct : A. Merger
44. A merger in which an entirely new firm is created and both the acquired and acquiring firm cease to exist is called ---------------
Correct : B. Consolidation
45. The payments made by a firm to repurchase shares of its outstanding stock from an individual investors in an attempt to eliminate a potential unfriendly takeover is called as -----
Correct : C. Greenmail
46. A financial device designed to make unfriendly takeover attempts financially
unappealing, if not impossible is called ------------
Correct : D. Poison pill
47. Generous compensation packages paid to a firm's top management in event of a takeover
referred as ----------
Correct : A. Golden parachute
48. The ____________ process must involve a significant change in the management culture
of the acquired business.
Correct : B. Post-Merger Integration
49. __________ are sought with an aim to trying to control the products and services feed by
the involved business.
Correct : C. Merger and Acquisition
50. Management involves the ___________ of resources.
Correct : A. Utilisation
51. The ______________ of the merged company determines its success or failure.
Correct : C. Capitalisation
52. ____________ is one of the valuation criteria for measuring the success of post merged
company.
Correct : C. Fair Market Value
53. _____________ is an incredibly challenging process that senior executives are required
to undertake in parallel to managing their core business operations.
Correct : B. Post-Merger Integration
54. The earning performance of the merged company can be measured by return on total ___________ and total net worth.
Correct : A. Assets
55. Under section 72A of Income tax act, 1961 carry forward and setting off of accumulated losses and unabsorbed depreciation of the amalgamating company is allowed against the __________ profits of the amalgamated company in order to encourage revival of sick units.
Correct : A. Future
56. The merged firm would enjoy ___________ debt capacity because the combination of two or more firms provide greater stability to the earnings level.
Correct : B. Higher
57. Merger/Amalgamation of two or more firms has been used as a dominant business strategy to seek rapid growth and ___________.
Correct : C. Diversification
58. The company which is subjected to _____________ will need to align its internal processes with that of the merged entity / acquired entity.
Correct : A. Restructuring
59. The earning performance of the merged company can be measured by return on total ___________ and return on net worth.
Correct : A. Assets
60. The ____________ improves the competitive position of the merged firm as it can command an increased market share.
Correct : A. Merger
61. The earning performance of the merged company can be measured by return on total assets and return on___________.
Correct : D. Net Worth
62. Merger/Amalgamation of two or more firms has been used as a dominant business strategy to seek rapid __________ and Diversification.
Correct : D. Growth
63. There are _______ sets of rules for a successful PMI.
Correct : B. 15
64. The net result of realizing economics of scale would be an __________ in the cost of
production.
Correct : A. Increase
65. Modern markets always dictate __________ innovation and improvement on product
and services.
Correct : A. Continuous
66. __________ involves the utilization of resources.
Correct : A. Management
67. The capitalisation of the ___________ company determines its success or failure.
Correct : C. Merged
68. Whenever the merged firm raises funds from the market through public issue of shares
or debentures, it can ___________ the floating cost.
Correct : A. Reduce
69. Modern markets always dictate Continuous innovation and __________ on product and
services.
Correct : A. Improvement
70. The earning Performance of the merged cannot be measured by return on total share
price and return on ________ worth.
Correct : A. Net
71. Companies need to be __________ with regards to terms and conditions of employment.
Correct : A. Sensitive
72. Post acquisition, the parent company may want to acquired company to adopt
______________ structure of the parent entity.
Correct : C. Compensation
73. The company which is subjected to restructuring will need to align its ___________
processes with that of the merged entity.
Correct : A. Internal
74. Restructuring typically would entail ___________ of persons operating on various
positions/grades in similar functions.
Correct : A. Re-allocation
75. A careful __________ is needed to avoid overlapping, underutilization of staff and to
take care of career progression.
Correct : B. Planning
76. The company which is subjected to ____________ will need to align its internal
processes with that of the merged entity.
Correct : A. Restructuring
77. If accompany is occupying leased premises, one should check conditions under the
__________ agreement and complete necessary formalities.
Correct : B. Lease
78. Restructuring could lead to changes in existing certificates such as _________ or similar
other certifications.
Correct : A. ISO
79. Restructuring is not always about __________ decisions or actions.