Which of the following types of deals were common in the first merger wave?
A. Horizontal
B. Vertical
C. Oligopolistic
D. None of the above
E. a, b, and c
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Research has shown that the following factors contribute to the origination of merger waves:
A. Economic shocks
B. Regulatory shocks
C. Technological shocks
D. a, b, and c
E. Both b and c
ESOPs may be used for which of the following?
As an alternative to divestiture
B. To consummate management buyouts
C. As an anti-takeover defense
D. A, B, and C
E. A and B only
Which of the following are not true about ESOPs?
An ESOP is a trust
B. Employer contributions to an ESOP are tax deductible
C. ESOPs can never borrow
D. Employees participating in ESOPs are immediately vested
E. C and D
Which of the following represent disadvantages of a holding company structure?
A. Potential for triple taxation
B. Significant number of minority shareholders may create contentious environment
C. Managers may have difficulty in making the best investment decisions
D. A, B, and C
E. A and C only