Most of the Biggest Mergers and Acquisitions Since 2000 Have

question 38

Multiple Choice

Most of the biggest mergers and acquisitions since 2000 have been horizontal-i.e.between companies in the same industry.This reflects the fact that:

• A)Antitrust authorities have been more concerned with vertical than horizontal mergers and acquisitions
• B)By showing that diversification does not offer significant risk-spreading benefits,modern financial theory has undermined the attractions of diversifying mergers and acquisitions
• C)Horizontal mergers and acquisitions offer the greatest potential for value creation through cost reduction and moderating competition
• D)CEOs favor horizontal mergers and acquisitions because of their desire to eliminate rivals.

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Definitions:

Self-Management

The ability to manage one's own behavior, emotions, and thoughts in a productive and healthy manner.

Cognitive Change

Alterations in thinking, intelligence, and problem-solving as a result of growth, learning, or experience.

Positive Emotional Reaction

A favorable affective response to a stimulus, characterized by feelings such as happiness, joy, or excitement.

Situation Modification

Strategies or actions taken to change an environment or context in order to improve outcomes or resolve issues.