Mergers, Acquisitions and Corporate Restructuring

CHAPTER 1 CORPORATE RESTRUCTURING

Test Bank

Multiple Choice Questions

1.

Often, the change is forced upon the company by external environment. Which one of the following is not an example of external environment (a) (b) (c) (d) Emergence of new competing products Emergence of new markets or new classes of consumers Demographic changes Change in pay structure of the company

2.

Which one of the following is incorrect (a) Wiser corporations foresee the external changes well in advance and change themselves accordingly (b) Not so wiser corporations foresee the external changes well in advance and change themselves accordingly (c) Both a and b (d) None of the above

3.

Which one of the following is correct (a) All the changes that a company undergoes would qualify to be termed corporate restructuring (b) Not all the changes that a company undergoes would qualify to be termed corporate restructuring (c) Both a and b (d) None of the above

Mergers, Acquisitions and Corporate Restructuring

4.

Which of the following activities cannot be termed as corporate restructuring (a) (b) (c) (d) Incorporation of a limited company Conversion of a proprietary concern into a company Conversion of a HUF into a company Conversion of a private company into a public company

5.

Downsizing is a form of (a) (b) (c) (d) Organizational change Business organization Outsourcing Corporate restructuring

6.

Which of the following is not a form of corporate restructuring (a) (b) (c) (d) Merger Consolidation Acquisition Downsizing

7.

On the basis of organizational hierarchy, the organizations have been categorized as (a) Functional organization (b) Divisional organization (c) Matrix organization Find the right choice (i) Only a (ii) Both a and b (iii) A, b and c (iv) Only b and c

8.

The acquisition of Larsen & Toubros (L&T) cement division in the form of a separate company named UltraTech Cement Limited by Grasim, by which the cement capacity under the control of Grasim went up from 14 million tonnes to 31 million tonnes p.a. is a case of (a) (b) (c) (d) Corporate restructuring Corporate structuring Corporate redesign None of the above

Mergers, Acquisitions and Corporate Restructuring

9.

Which one of these would qualify to be called exercises in corporate restructuring (a) (b) (c) (d) Acquisition of a company Sell-off of a company or its substantial assets Delisting of a company Merger of two or more companies belonging to the same promoter

10. Which one of these is not an example of initial creation of a corporate structure (a) (b) (c) (d) Incorporation of a limited company Conversion of a proprietary concern into a company Conversion of a private company into a public company Conversion of a company into a partnership firm

11. The concept of reengineering was fathered by a) b) c) d) John Hammer Michael Carrey Michael Hammer and James Champy None of the above

Answers
1. d 2. c 3. b 4. c 5. a 6. d 7. c 8. a 9. d 10. d 11. c