A conglomerate merger takes place between firms in completely different industries.; True or False
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A conglomerate merger takes place between
firms in completely different industries.; True or False
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- A merger occurs when one corporation takes over all the operations of another business entity, and that entity is dissolved. Select one: True FalseIt is often difficult to draw a distinctive line between mergers and takeovers, and the terms tend to be used rather loosely to describe the process by which firms combine. In principle, a merger may be defined as a combination of firms of approximately equal standings on the basis of an agreement between their respective managements who recognize some mutual advantage in he arrangement. A merger can result in a new company being formed or one of the two companies absorbs the other. Required: i. Describe various types of mergers and critically discuss the motives for undertaking mergers and takeover. ii. Identify the organ(s) or institution(s) that regulates/approves the mergers and acquisitions in Tanzania and discuss all steps/procedures to be undertaken by the merging companies in Tanzania as required by the regulator for a merger to be successful. iii. Identify any recent Merger and Acquisition in Tanzania, discuss its type and the motive behind it.If both big companies enter into a joint venture, will that signify unfair competition? Explain briefly.
- TRUE OR FALSE 1. The merger of two completely unrelated enterprises is referred to as a congeneric merger, however, the merger of somewhat related companies is referred to as a conglomerate merger of somewhat related companies is referred to as conglomerate merger. 2. if there is sufficient proof that the acquisition has been made for a business purpose and the shareholders of the target firm will be compensated with voting shareholders of the target firm will be compensated with voting shares in the acquiring firm, the acquisition will be non-taxable. 3. with cash consideration, the stockholders of the target firm share the gains and losses of acquisition and vice-versa. 4. A merger is the total absorption of one firm by another, however with a consolidation an entirely new firm is created. 5. A white knight is a friendly suitor that a target firm turns to as an alternative to a hostile bidder.A horizontal merger takes place between companies operating:a. At different stages of the production processb. In the same area of businessc. In unrelated lines of businessd. All of the abovee. None of the aboveWhy might two companies choose to form a strategicalliance rather than pursue a merger or an acquisition?
- Agency problems are said to be inherent in the corporate form of an organization. Why do you think this is the case?Do you think agency problems arise in a sole proprietorship or a partnership?What steps would you take to reduce agency problems in a so-called typical corporation?How important is intercompany activity on decisions to form business combinations? We see intercompany transfers quite often between companies involved in a business combination. Why do you feel that this happens so frequently? Is this ever a concern to the investors, controlling and noncontrolling?When the boards of directors of the potential combining companies negotiate mutually agreeable terms of a proposed combination, it's a hostile business combination. * True False