Mergers and Acquisitions Are a Popular Mode of Investment for Firms

question 44

Multiple Choice

Mergers and acquisitions are a popular mode of investment for firms wishing to protect, consolidate and advance their global competitive positions. Examples include,

• A)selling off divisions that fall outside the scope of their core competence.
• B)acquiring strategic assets that reduce their competitiveness.
• C)firms can better leverage their intangible assets and on a larger scale through licensing.
• D)none of the above

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Definitions:

Serial Bonds

A sequence of small bond issues of progressively longer maturity.

Primary Market

The market where firms raise financial capital.