Тема 3.7. Takeovers, mergers and buyouts

Задание 1 Choose the correct variant for the following definition:

Joining with firms in other stages of the production or sale of a product

1. horizontal integration;

2. vertical integration;

3. forward integration.

Задание 2 Choose the correct variant for the following definition:

No merge with or take over other firms producing the same type of goods or services

1. horizontal integration;

2. vertical integration;

3. forward integration.

Задание 3 Choose the correct variant for the following definition:

A merger with or the acquisition of one’s suppliers

1. backward integration;

2. vertical integration;

3. forward integration.

Задание 4 Choose the correct variant for the following definition:

A merger with or the acquisition of one’s marketing outlets

1. backward integration;

2. vertical integration;

3. forward integration.

Задание 5 Choose the correct variant for the following definition:

Buying another company’s shares on the stock exchange, hoping to persudae enough other shareholders to sell to take control of the company

1. raid;

2. takeover bid;

3. diversification.

Задание 6 Choose the correct variant for the following definition:

A public offer to a company’s shareholders to buy their shares, at a particular price during a particular period, so as to acquire a company

1. raid;

2. takeover bid;

3. diversification.

Задание 7 Choose the correct variant for the following definition:

Expanding into new fields

1. raid;

2. takeover bid;

3. diversification.

Задание 8 Choose the correct variant for the following definition:

Combined production that is greater than the sum of the separate parts

1. synergy;

2. diversification;

3. innovation.

Задание 9 Choose the correct variant for the following definition:

Designing new products and bringing them to the market

1. synergy;

2. diversification;

3. innovation.

Задание 10 Deside if the following industry tends to be vertically integrated, either forward, backward or both:

Bicycle manufacturers

1. forward integration;

2. backward integration;

3. both;

4. neither.

Задание 11 Deside if the following industry tends to be vertically integrated, either forward, backward or both:

Car makers

1. forward integration;

2. backward integration;

3. both;

4. neither.

Задание 12 Deside if the following industry tends to be vertically integrated, either forward, backward or both:

Electricity and forward companies

1. forward integration;

2. backward integration;

3. both;

4. neither.

Задание 13 Deside if the following industry tends to be vertically integrated, either forward, backward or both:

Food producers

1. forward integration;

2. backward integration;

3. both;

4. neither.

Задание 14 Deside if the following industry tends to be vertically integrated, either forward, backward or both:

Oil (petrol) companies

1. forward integration;

2. backward integration;

3. both;

4. neither.

Задание 15 Deside if the following industry tends to be vertically integrated, either forward, backward or both:

Newspapers

1. forward integration;

2. backward integration;

3. both;

4. neither.

Задание 16 Deside if the following industry tends to be vertically integrated, either forward, backward or both:

Radio and television manufacturers

1. forward integration;

2. backward integration;

3. both;

4. neither.

Задание 17 Deside which of the following is not the argument in favour of mergers or takovers.

1. A larger company will have a stronger position on the market.

2. Conglomerates vay become unmanageable and fail to achieve synergy.

3. Entering new markets with new brands is generally slow, risky and expensive.

4. Innovation is expensive and risky, and sometimes more expensive than acquiring or merging with other successful innovative firm.

Задание 18 Deside which of the following is not the argument against mergers or takovers.

1. Conglomerates vay become unmanageable and fail to achieve synergy.

2. Contrary to common belief, a company’s optimum market share is rarely very large.

3. Diversification dilutes a company’s shared values (such as quality, service, innovation and so on).

4. It may permit the rationalization and optimization of the use of production facilities and invested capital, and enable economies of scale.

Задание 19 Deside which of the following is not the advantage of a raid as compared to a takeover bid.

1. In many countries, if all the shareholders agree to sell, the bidder is obliged to buy 100% of the shares, and cannot stop at 50% plus one.

2. In this case, it is not necessary to pay more than the existing market price.

3. One can attempt to buy a large quantity of shares through several brokers as soon as the market opens, before speculators notice the rising price and join in.

4. It may permit the rationalization and optimization of the use

Задание 20 Decide what corresponds to the following definition:

This is takeovers using borrowed money

1. Leveraged buyouts.

2. LBO

3. both;

4. none of the above.

Приложение 1

к тестовым заданиям

№ п/п	Форма тестовых заданий	№ тестовых заданий
1	Открытая	1.5.1
		1.5.2
		1.5.3
		1.5.4
		1.7.1
		1.7.2
		1.7.3
		1.7.4
		1.7.5
		1.7.6
		1.7.7
		1.7.8
		1.7.9
		1.7.10
		1.7.11
		2.2.1
		2.2.2
		2.2.3
		2.2.4
		2.2.5
		2.2.6
		2.2.7
		2.2.8
		2.4.1
		2.4.2
		2.4.3
		2.4.4
		2.4.5
		2.4.6
		2.4.7
		3.2.10
		3.2.11
		3.2.12
		3.2.13
		3.2.14
		3.2.15
		3.2.16
2	Закрытая	1.1
		1.2.1
		1.2.3
		1.2.4
		1.2.5
		1.2.6
		1.2.7
		1.3.3
		1.4.1
		1.4.2
		1.4.3
		1.4.4
		1.4.5
		1.4.6
		1.4.7
		1.4.8
		1.4.9
		1.4.10
		1.6.1
		1.6.2
		1.6.3
		1.6.4
		1.6.5
		1.6.6
		1.6.7
		2.1.1
		2.1.2
		2.1.3
		2.1.4
		2.1.5
		2.1.6
		2.1.7
		2.1.8
		2.5.1
		2.5.2
		2.5.3
		2.5.4
		2.5.5
		2.5.6
		3.1.1
		3.1.2
		3.1.3
		3.1.3
		3.1.4
		3.1.5
		3.1.6
		3.1.7
		3.1.8
		3.1.9
		3.1.10
		3.2.1
		3.2.2
		3.2.3
		3.2.4
		3.2.5
		3.2.6
		3.2.7
		3.2.8
		3.2.9
		3.3.1
		3.3.2
		3.3.3
		3.3.4
		3.3.5
		3.3.6
		3.3.7
		3.3.8
		3.3.9
		3.4.1- 3.7.20
3	На соответствие	1.3.1
		1.3.2
		2.3.1
4	На последовательность

Зав. кафедрой _______________________ Исмагилова Л.А _________________2007 г.

Преподаватель _______________________ Гелвановский Г.В. _________________2007 г.

Приложение 2

к тестовым заданиям

№ тестового задания	Правильные ответы (№, слова, параметры, буква и др.)
1.1.1	1B, 2D, 3A, 4E, 5C
1.2.1	resources
1.2.2	manageable
1.2.3	setting, communicate
1.2.4	supervise, performance
1.2.5	achieved
1.2.6	board of directors
1.2.7	innovations
1.3.1	1B, 2C, 3A
1.3.2	1B, 2C, 3A
1.3.3	B
1.4.1	A
1.4.2	C
1.4.3	B
1.4.4	C
1.4.5	C
1.4.6	B
1.4.7	A
1.4.8	B
1.4.9	C
1.4.10	B
1.5.1	seniority
1.5.2	rewards
1.5.3	bonus
1.5.4	To resign
1.6.1	job vacancies, employment agencies
1.6.2	apply
1.6.3	candidate, applicant
1.6.4	application, application form
1.6.5	CV
1.6.6	references
1.6.7	job description, short-listed, interview
1.7.1	industrial action
1.7.2	go-slow
1.7.3	Strike
1.7.4	collective bargaining
1.7.5	to picket
1.7.6	working-to-rule
1.7.7	Manual workers
1.7.8	trade union
1.7.9	uneconomic
1.7.10	public sector
1.7.11	conglomerate
2.1.1	subcontractor
2.1.2	component
2.1.3	outsourcing
2.1.4	Capacity
2.1.5	plant
2.1.6	Location
2.1.7	inventory
2.1.8	lead time
2.2.1	credit facilities
2.2.2	warranty
2.2.3	Brand-switcher
2.2.4	product life cycle
2.2.5	profitability
2.2.6	opportunities
2.2.7	market share
2.2.8	Niche
2.3.1	1A, 2I, 3F, 4H, 5D, 6J, 7E, 8B, 9C, 10G
2.4.1	word-of-mouth advertising
2.4.2	institutional advertising / prestige advertising (2 варианта правильного ответа)
2.4.3	brief
2.4.4	target customers
2.4.5	threshold effect
2.4.6	comparative parity method
2.4.7	counter-cyclical advertising
2.5.1	competitors
2.5.2	word-of-mouth advertising
2.5.3	brand-switcher
2.5.4.	points of sale
2.5.5	brand name
2.5.6	packaging
3.1.1	shareholders
3.1.2	revenue
3.1.3	liabilities
3.1.4	turnover
3.1.5	assets
3.1.6	depreciation
3.1.7	debtors
3.1.8	creditors
3.1.9	stock
3.1.10	overheads
3.2.1	overdraft
3.2.2	credit card
3.2.3	cash dispenser
3.2.4	loan
3.2.5	standing order
3.2.6	mortgage
3.2.7	home banking
3.2.8	current account
3.2.9	deposit account
3.2.10	yield
3.2.11	maturity
3.2.12	underwrite
3.2.13	takeover
3.2.14	merger
3.2.15	blue-chip company
3.2.16	solvency
3.3.1	stockbroker
3.3.2	rights issue
3.3.3	over-the-counter
3.3.4	creditor
3.3.5	debt
3.3.6	market value
3.3.7	liquidation
3.3.8	liabilities
3.3.9	underwriter
3.4.1	Price appreciation
3.4.2	Price depreciation
3.4.3	capital gains.
3.4.4	buy-and-hold investors.
3.4.5	bearer certificate
3.4.6	debt financing
3.4.7	equity financing
3.4.8	yield
3.4.9	liquid
3.4.10	maturity
3.4.11	Floating rate note
3.4.12	convertible bond
3.4.13	Junk bond
3.5.1	futures
3.5.2	options
3.5.3	hedging
3.5.4	speculation
3.5.5	derivatives
3.5.6	premium
3.5.7	speculation
3.5.8	Market price
3.5.9	call
3.5.10	fixed
3.6.1	Market leader
3.6.2	Market challenger
3.6.3	Market follower
3.6.4	monopsony
3.6.5	monopoly
3.6.6	Oligopoly
3.6.7	Monopolistic competition
3.6.8	Natural competition
3.6.9	Perfect competition
3.6.10	dominant-firm oligopoly
3.7.1	Vertical integration
3.7.2	horizontal integration
3.7.3	backward integration
3.7.4	Forward integration
3.7.5	raid
3.7.6	Take over bid
3.7.7	diversification
3.7.8	synergy
3.7.9	innovation
3.7.10	neither
3.7.11	neither
3.7.12	Forward integration
3.7.13	neither
3.7.14	both
3.7.15	neither
3.7.16	neither
3.7.17	Conglomerates vay become unmanageable and fail to achieve synergy.
3.7.18	It may permit the rationalization and optimization of the use of production facilities and invested capital, and enable economies of scale
3.7.19	It may permit the rationalization and optimization of the use
3.7.20	both

Преподаватель _______________________ Гелвановский Г.В. _________________2007 г.