Mergers and Acquisitions Paper 1

1

Entity A acquires all of the voting shares of Entity B for $1,000,000. At the time of the acquisition, the net fair value of the identifiable assets acquired and liabilities assumed had a carrying amount of $900,000 and a fair value of $800,000. The amount of goodwill Entity A will record on the acquisition date is






2

A business combination may be legally structured as a merger, a consolidation, or an acquisition. Which of the following describes a business combination that is legally structured as a merger?






3

A horizontal merger is a merger between






4

Which type of acquisition does not require shareholders to have a formal vote to approve?






5

The acquisition of a retail shoe store by a shoe manufacturer is an example of






6

Which of the following is a combination involving the absorption of one firm by another?






7

When firm B merges with firm C to create firm BC, what has occurred?






8

All of the following are true of mergers except






9

The merger of General Motors and Ford would be categorized as a






10

When choosing a merger over an acquisition of stock to accomplish a business combination, which of the following is irrelevant to the decision?






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