TRUE/FALSE. Write ‘T’ if the statement true and ‘F’ if
TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1)Mergers and acquisitions (M&A) represent a corporate strategy to buy, sell, unite, or execute some other form of business transaction involving two or more existing companies in a manner that is either friendly (in agreement with the acquired company’s agenda) or hostile (against the acquired company’s agenda).
2)A business merger is the product created when two or more companies agree to band together for strategic reasons.
3)A business acquisition is the product created when one company purchases another company.
4)A friendly takeover usually represents consent and approval by the takeover target for the purchasing company to acquire the target company.
5)A hostile takeover usually represents non-consent and disapproval by the takeover target.
6)M&A activity was very much alive and well in Canada during the period 2006 - 2008.
7)Horizontal integration occurs when the hospitality enterprise acquires a target company that is usually found within its own competitive set and is currently servicing the market with a similar product or service.
8)Vertical integration occurs when the hospitality enterprise purchases a complementary, supporting, or leading company that is currently integrated or will become integrated with the existing hospitality company.
9)Conglomerate integration occurs when the purchasing company acquires a target company that does not have a direct or indirect relationship to the purchasing company.
10)Synergy occurs when the total value of the business combination is greater than the individual values of the M&A transaction companies added together.