McqMate
1. |
_________ merger involves firm engaged in unrelated types of activities. |
A. | Vertical |
B. | Horizontal |
C. | Conglomerate |
D. | Demerger |
Answer» C. Conglomerate |
2. |
When existing company is dissolved to form few new companies, it is called as ________ |
A. | Sin off |
B. | Split off |
C. | Split up |
D. | All of the above |
Answer» C. Split up |
3. |
__________means an acquirer takes over the control of the target company. |
A. | Joint Venture |
B. | Takeover |
C. | Disinvestment |
D. | Demerger |
Answer» B. Takeover |
4. |
The ___________means changing the structure of an organization such as reducing the hierarchical levels. |
A. | Financial Restructuring |
B. | Organizational Restructuring |
C. | Corporate Restructuring |
D. | All of the above |
Answer» B. Organizational Restructuring |
5. |
________parties work together or a single project for a finite period of time. |
A. | Strategic Alliance |
B. | Joint Venture |
C. | Disinvestment |
D. | Franchising |
Answer» A. Strategic Alliance |
6. |
__________means the action of an organization or government selling or liquidating an asset or subsidiary. |
A. | Merger |
B. | Joint Venture |
C. | Takeover |
D. | Disinvestment |
Answer» D. Disinvestment |
7. |
__________ is an arrangement whereby the assets of two or more companies come under the control of one company. |
A. | Merger |
B. | Buyout |
C. | Joint Venture |
D. | Demerger |
Answer» A. Merger |
8. |
________may be defined as an arrangement where one party grants another party the right to use trade name. |
A. | Alliance |
B. | Franchising |
C. | Slump sale |
D. | Joint Venture |
Answer» B. Franchising |
9. |
________merger is a merger of two or more companies that compete in the same industry. |
A. | Vertical |
B. | Horizontal |
C. | Co generic |
D. | Conglomerate |
Answer» B. Horizontal |
10. |
____________ helps a firm to grow and expand. |
A. | Corporate Restructuring |
B. | Merger |
C. | Takeover |
D. | Demerger |
Answer» A. Corporate Restructuring |
11. |
In _________, company distributes its shareholding in subsidiary to its shareholders thereby not changing the ownership pattern. |
A. | Spin off |
B. | Split off |
C. | Split up |
D. | All of the above |
Answer» A. Spin off |
12. |
________ is the fusion of two or more existing companies. |
A. | Merger |
B. | Takeover |
C. | Bailout |
D. | Demerger |
Answer» A. Merger |
13. |
Reverse Merger takes place when a healthy company merges with a financially ________company. |
A. | Weak |
B. | Strong |
C. | Merged |
D. | All of the above |
Answer» A. Weak |
14. |
The company which is formed as a result of the merger is known as _______ company. |
A. | Amalgamating |
B. | Amalgamated |
C. | Bailout |
D. | Takeover |
Answer» B. Amalgamated |
15. |
The risks of investors can be __________through adequate transparency an disclosures. |
A. | Enhance |
B. | Increased |
C. | Minimized |
D. | Maximized |
Answer» C. Minimized |
16. |
___________ deals with Accounting for amalgamations. |
A. | Accounting Standard 14 |
B. | Accounting Standard 11 |
C. | Accounting Standard 13 |
D. | Accounting Standard 12 |
Answer» A. Accounting Standard 14 |
17. |
_________ plays an important role in survival of weak units. |
A. | Merger |
B. | Demerger |
C. | Disinvestment |
D. | Franchising |
Answer» A. Merger |
18. |
__________ is the most important piece of restructuring and organizational change. |
A. | Structure for Success |
B. | Communication |
C. | Plan Ahead |
D. | Meet in the middle |
Answer» B. Communication |
19. |
___________is levied on “Instruments”. |
A. | Stamp duty |
B. | Custom duty |
C. | Excise duty |
D. | All of the above |
Answer» A. Stamp duty |
20. |
The Competition Act, 2002 regulates the various forms of business combinations through __________ |
A. | Reserve Bank of India |
B. | SEBI Regulation |
C. | Competition Commission of India |
D. | All of the above |
Answer» C. Competition Commission of India |
21. |
A company in one country can be acquired by an entity (another company) from other countries is called __________ |
A. | Cross Border Merger |
B. | Intra Border Merger |
C. | Poison Pill Merger |
D. | Demerger |
Answer» A. Cross Border Merger |
22. |
The tax relief under section 72A will be avail if the amalgamation is between ________ |
A. | Sole Proprietor |
B. | Companies |
C. | Partnership Firm |
D. | All of the above |
Answer» B. Companies |
23. |
Obtain an order of the court sanctioning the scheme of ________ |
A. | Merger |
B. | Demerger |
C. | Takeover |
D. | Disinvestment |
Answer» B. Demerger |
24. |
Refusal by the _____________ to register a transfer is an important strategy to avert a takeover. |
A. | Board of Directors |
B. | Government |
C. | RBI |
D. | SEBI |
Answer» A. Board of Directors |
25. |
Financial, Accounting and Tax related matters inspire ___________ takeover. |
A. | Cross Border |
B. | Friendly |
C. | Hostile |
D. | Compulsory |
Answer» A. Cross Border |
26. |
__________ takes place when a profit-making parent company merges into a loss-making subsidiary company. |
A. | Reverse Merger |
B. | Takeover |
C. | Demerger |
D. | Disinvestment |
Answer» A. Reverse Merger |
27. |
__________ takeover is the takeover which is affected with the consent of target company’s executives and management. |
A. | Compulsory |
B. | Hostile |
C. | Friendly |
D. | Bailout |
Answer» C. Friendly |
28. |
A _________ offer is required to be made within 15 business days of the original tender offer. |
A. | Voluntary |
B. | Conditional |
C. | Competing |
D. | Mandatory Tender |
Answer» C. Competing |
29. |
The Indian ____________ contains several provisions that deal with the taxation of different categories of mergers and acquisitions. |
A. | Competition Act, 2002 |
B. | Income Tax Act, 1961 |
C. | Companies Act, 2013 |
D. | All of the above |
Answer» B. Income Tax Act, 1961 |
30. |
Global takeovers are __________ processes. |
A. | Simple |
B. | Complex |
C. | Mixed |
D. | Both (a) and (b) |
Answer» 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. |
A. | Merger |
B. | Takeover |
C. | Demerger |
D. | Disinvestment |
Answer» C. Demerger |
32. |
__________ attempts by target managers to defeat outstanding takeover proposals are overt forms of takeover defences. |
A. | Takeover Defences |
B. | Hostile Takeover |
C. | Bailout Takeover |
D. | Friendly Takeover |
Answer» A. Takeover Defences |
33. |
The main reason for _________ takeover is to attain monopoly. |
A. | Friendly |
B. | Cross Border |
C. | Hostile |
D. | Compulsory |
Answer» B. Cross Border |
34. |
Under _________ Strategy, the target company attempts to purchase the shares of the raider company. |
A. | The Crown Jewel |
B. | The Packman Defence |
C. | Golden Parachutes |
D. | Buyback |
Answer» B. The Packman Defence |
35. |
The _______ deals with the power of a company to acquire shares of another company. |
A. | Companies Act, 2013 |
B. | Competition Act, 2002 |
C. | SEBI Regulation |
D. | All of the above |
Answer» A. Companies Act, 2013 |
36. |
The divestiture of major operating unit most conveted by the bidder- commonly known as the ____________ |
A. | Poison Pill |
B. | Crown Jewel |
C. | Packman |
D. | Golden Parachutes |
Answer» B. Crown Jewel |
37. |
The purchase of the business of an enterprise by another enterprise is known as ________ |
A. | Merger |
B. | Acquisition |
C. | Buyout |
D. | Disinvestment |
Answer» B. Acquisition |
38. |
The defence mechanism being used is anti- takeover amendments to the company’s or articles of association are known as ________ |
A. | Shark repellents |
B. | Packman |
C. | Poison Pill |
D. | Crown Jewel |
Answer» 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 ____________ |
A. | Merger |
B. | Friendly Takeover |
C. | Hostile Takeover |
D. | Demerger |
Answer» C. Hostile Takeover |
40. |
_____________ takeovers are substantial acquisition of shares in a financially weak company not being a sick industrial company. |
A. | Bailout |
B. | Partial |
C. | Resistance |
D. | Hostile |
Answer» A. Bailout |
41. |
________ means an acquirer takes over the control of the target company. |
A. | Takeover |
B. | Disinvestment |
C. | Merger |
D. | Demerger |
Answer» A. Takeover |
42. |
The Indian Stamp Act, 1899 provides for stamp duty on transfer/ issue of shares at the rate of ______ |
A. | 0.50% |
B. | 0.25% |
C. | 0.01% |
D. | 0.05% |
Answer» B. 0.25% |
43. |
___________ helps to widen the growth opportunities for the company. |
A. | Synergies |
B. | Tax Advantage |
C. | Disinvestment |
D. | Diversification |
Answer» D. Diversification |
44. |
_________ method is used in accounting for amalgamations in the nature of purchase. |
A. | Pooling of interest |
B. | Taxation Aspects |
C. | Purchase |
D. | Goodwill |
Answer» C. Purchase |
45. |
The note of every application filed with the Tribunal has to be given to the _________ |
A. | Parliament |
B. | Central Government |
C. | State Government |
D. | Chairman |
Answer» B. Central Government |
46. |
The scheme of merger and amalgamation is required to approved by ___________, before it is filed with the High court. |
A. | Shareholders |
B. | Director |
C. | Government |
D. | SEBI |
Answer» A. Shareholders |
47. |
A _______ offer may be made by an existing shareholder or an acquirer who holds no shares in the target company. |
A. | Voluntary |
B. | Conditional |
C. | Competing |
D. | Mandatory Tender |
Answer» A. Voluntary |
48. |
A popular defence mechanism against hostile takeover bids is the creation of securities called _________ |
A. | Golden Parachutes |
B. | The Packman Defence |
C. | Poison Pills |
D. | The Crown Jewel |
Answer» C. Poison Pills |
49. |
Permission of ______ is required for the issue of any security to a person resident outside India. |
A. | RBI |
B. | SEBI |
C. | Government |
D. | Parliament |
Answer» A. RBI |
50. |
_________ takeover is the takeover which is affected with the consent of target’s company executives and management. |
A. | Hostile |
B. | Friendly |
C. | Compulsory |
D. | Cross Border |
Answer» B. Friendly |
51. |
___________ defines the various terms connected with takeover like acquirer, acquisition, target company, etc. |
A. | Regulation 2 |
B. | Regulation 3(1) |
C. | Regulation 3(3) |
D. | Regulation 4 |
Answer» A. Regulation 2 |
52. |
__________ should be in public interest. |
A. | Amalgamation |
B. | Takeover |
C. | Merger |
D. | Demerger |
Answer» 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. |
A. | Corporate Restructuring |
B. | Communication |
C. | Ownership |
D. | Capital Structure |
Answer» A. Corporate Restructuring |
54. |
________ takes place when one company acquires control over other company by way of purchase or exchange of shares. |
A. | Merger |
B. | Demerger |
C. | Takeover |
D. | Disinvestment |
Answer» C. Takeover |
55. |
The Competition Act essentially considers _________ kinds of anti- competitive agreements. |
A. | one |
B. | Two |
C. | Three |
D. | Four |
Answer» B. Two |
56. |
The _____________ has exempted the payment of stamp duty on instrument evidencing transfer of property between companies limited by shares. |
A. | State Government |
B. | Central Government |
C. | Both (a) & (b) |
D. | Parliament |
Answer» B. Central Government |
57. |
Amalgamated entities can assess to _______ number of market resources. |
A. | Smaller |
B. | Larger |
C. | Limited |
D. | All of the above |
Answer» B. Larger |
58. |
The risk of investors can be __________ through adequate transparency and disclosures. |
A. | Minimized |
B. | Maximized |
C. | Both (a) & (b) |
D. | None of the above |
Answer» A. Minimized |
59. |
___________ is the form of demerger where shareholders of existing company form a new company to takeover specific division of existing company. |
A. | Spin off |
B. | Split off |
C. | Split up |
D. | All of the above |
Answer» B. Split off |
60. |
___________ is a combination of two or more companies into an existing company. |
A. | Absorption |
B. | Consolidation |
C. | Both (a) & (b) |
D. | Franchising |
Answer» A. Absorption |
61. |
_________ helps in enhancing market leadership of the company. |
A. | Merger |
B. | Demerger |
C. | Amalgamation |
D. | Takeover |
Answer» C. Amalgamation |
62. |
After meeting, the _________ of the meeting shall report the result thereof to the court. |
A. | Chairman |
B. | Board of Directors |
C. | Shareholder |
D. | All of the above |
Answer» A. Chairman |
63. |
The company or companies which so merge being referred to as the _______ company or companies. |
A. | Amalgamated |
B. | Amalgamating |
C. | Both (a) & (b) |
D. | Partnership Firm |
Answer» B. Amalgamating |
64. |
An existing company transfers its various divisions to one or more new companies formed for the purpose, is said to be ______________ |
A. | Partial demerger |
B. | Complete demerger |
C. | Takeover |
D. | Disinvestment |
Answer» B. Complete demerger |
65. |
_________ takes place when a healthy company merges with a financially weak company. |
A. | Reverse Merger |
B. | Demerger |
C. | Takeover |
D. | Disinvestment |
Answer» A. Reverse Merger |
66. |
_________may be defined as an arrangement where one party grants another party the right to use trade name. |
A. | Alliance |
B. | Franchising |
C. | Slump Sale |
D. | Joint Venture |
Answer» B. Franchising |
67. |
A popular defence mechanism against hostile takeover bids is the creation of securities called ___________ |
A. | Shark Repellents |
B. | Poison Pills |
C. | Packman defence |
D. | The Crown Jewel |
Answer» B. Poison Pills |
68. |
_______ has laid down the guidelines for takeovers in order to protect the interest of the small investors. |
A. | SEBI |
B. | RBI |
C. | Both (a) & (b) |
D. | Government |
Answer» A. SEBI |
69. |
A _________merger is a merger of business firms who are engaged into same line of business. |
A. | Horizontal |
B. | Vertical |
C. | Conglomerate |
D. | Co generic |
Answer» A. Horizontal |
70. |
The restructuring of companies by way of takeover is governed by _________ |
A. | SEBI |
B. | RBI |
C. | Government |
D. | All of the above |
Answer» A. SEBI |
71. |
________ is a technique of corporate restructuring in which an independent company is created from parent company in order to promote specialization. |
A. | Merger |
B. | Demerger |
C. | Takeover |
D. | Disinvestment |
Answer» B. Demerger |
72. |
A ________is a combination of two or more companies into a new company. |
A. | Consolidation |
B. | Absorption |
C. | Both (a) & (b) |
D. | Demerger |
Answer» 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. |
A. | Vertical |
B. | Horizontal |
C. | Co generic |
D. | Conglomerate |
Answer» 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. |
A. | Joint Venture |
B. | Takeover |
C. | Franchising |
D. | Demerger |
Answer» A. Joint Venture |
75. |
-------- growth is through enhanced customer base, higher sales, increased revenue, money material , machinery ect. |
A. | Organised |
B. | Unorganised |
C. | Systematic |
D. | Instant |
Answer» A. Organised |
76. |
----------growth provides an organisation with an aim of achieving accelerated or increased growth through mergers, amalgamation ect. |
A. | Organised |
B. | Unorganised |
C. | Systematic |
D. | Instant |
Answer» B. Unorganised |
77. |
A -------- merger is a merger of business firm engaged into same line of business. |
A. | horizontal |
B. | vertical |
C. | conglomerate |
D. | market extention |
Answer» A. horizontal |
78. |
A ---------- merger is a merger of business firm engaged in different stages of production in an industry. |
A. | horizontal |
B. | Vertical |
C. | Conglomerate |
D. | Market extention |
Answer» B. Vertical |
79. |
A ------------ is a merger of business firm who are engaged in unrelated business. |
A. | horizontal |
B. | Vertical |
C. | Conglomerate |
D. | Market extention |
Answer» 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. |
A. | 50 |
B. | 75 |
C. | 25 |
D. | 51 |
Answer» A. 50 |
81. |
----------- has laid down the guidelines for takeovers in order to protect the interest of small investors. |
A. | SEBI |
B. | RBI |
C. | ROC |
D. | SBI |
Answer» A. SEBI |
82. |
------------------- strategy involves a significant change in the financial structure of the business firm. |
A. | Financial Restructuring |
B. | Financial Planning |
C. | Financial Management |
D. | Financial Services |
Answer» A. Financial Restructuring |
83. |
In stock swap merger the holder of target company's stock receive --------- of the acquiring company's stock. |
A. | Shares |
B. | Debentures |
C. | Deposits |
D. | Bonds |
Answer» A. Shares |
84. |
------------- are commercial loans raised by eligible resident entities from reorganised nonresident entities. |
A. | External commercial borrowings |
B. | Commercial bills |
C. | Treasury bills |
D. | Credit note |
Answer» 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. |
A. | Leveraged buyout |
B. | Rehabilitation finance |
C. | Corporate finance |
D. | Institutional finance |
Answer» A. Leveraged buyout |
86. |
When sick industries gets merged with healthy units with financial package is termed as- ----- |
A. | Financial rehabilitation |
B. | LBO |
C. | ECBs |
D. | Corporate finance |
Answer» A. Financial rehabilitation |
87. |
The ---------is prepared by insolvency resulation applicant and submitted to insolvency professional who seek the consent of committee of creditors. |
A. | Insolvency resulation plan |
B. | Rehabilitation plan |
C. | Insolvency report |
D. | Resulation draft |
Answer» A. Insolvency resulation plan |
88. |
A ---------- is a financial transaction in which a company is purchased with a combination of equity and debt. |
A. | Leveraged buyout |
B. | Rehabilitation finance |
C. | Borrowed finance |
D. | Corporate finance |
Answer» A. Leveraged buyout |
89. |
In an------------------, the incumbent management team, acquires a sizeable portion of shares of the company. |
A. | MBO |
B. | LBO |
C. | MBI |
D. | MBS |
Answer» A. MBO |
90. |
An ---------in which an external management team acquires the shares. |
A. | MBO |
B. | LBO |
C. | MBI |
D. | MBS |
Answer» C. MBI |
91. |
A---------- buyout is a form of leveraged buyout where both the buyer and the seller are private equity firms. |
A. | Primary |
B. | Secondary |
C. | Tertiary |
D. | Management buyout |
Answer» B. Secondary |
92. |
If a company that was acquired in a secondary buyout get sold to another financial sponsor is called a ----------- buyout. |
A. | Primary |
B. | Secondary |
C. | Tertiary |
D. | Management buyout |
Answer» C. Tertiary |
93. |
For a company, a ----------- is a process by which restructuring takesplace and surplus cash is returned to shareholders. |
A. | Capital reorganisation |
B. | Capital appreciation |
C. | Capital financing |
D. | Capital depreciation |
Answer» 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. |
A. | Buy -Back |
B. | Free Reserve |
C. | Bonus issue |
D. | Forfeiting |
Answer» 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 --------. |
A. | SH-8 |
B. | SH-9 |
C. | SH-10 |
D. | SH-11 |
Answer» 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 --------------. |
A. | SH-8 |
B. | SH-9 |
C. | SH-10 |
D. | SH-11 |
Answer» 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. |
A. | Takeover bid |
B. | Merger bid |
C. | Finance bid |
D. | Invitation bid |
Answer» 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. |
A. | SH-8 |
B. | SH-9 |
C. | SH-10 |
D. | SH-11 |
Answer» C. SH-10 |
99. |
The return of buyback shall be filed with the Registrar in form no. ----------- |
A. | SH-8 |
B. | SH-9 |
C. | SH-10 |
D. | SH-11 |
Answer» D. SH-11 |
100. |
----------------of the company shall contain on enabling provision for buyback of shares. |
A. | Article of Association |
B. | Memorandum of Association |
C. | Prospectus |
D. | Offer document |
Answer» A. Article of Association |
Done Reading?