List the reasons that bring about the existence of mergers, though they tend to destroy rather than create shareholder value.
What will be an ideal response?
Given that mergers and acquisitions, on average, destroy rather than create shareholder value, they exist because of:
• Principal-agent problems
• The desire to overcome competitive disadvantage
• Superior acquisition and integration capability
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A company is referred to as a parent if it owns
a. 33% of the debt securities of a second company b. 100% of the debt securities of a second company c. 15% of the equity securities of a second company d. More than 50% of the equity securities of a second company
A_________is a promise usually implied from the landlord that others will not interfere with the tenant's right to occupy the premises
Fill in the blank(s) with correct word
Which of the following best describes the right to indemnity? A) It is the right of a creditor to receive interest on the debt
B) It is the right of a principal to receive compensation from the creditor. C) It is the right of a guarantor to be reimbursed by the principal. D) It is the right of a creditor to withhold payment in the case of a dispute.
Which of the following is an example of a trade promotion?
A. A manufacturer offers a department store a buyback allowance for a line of cosmetic products that it hasn't sold. B. A restaurant sends its customers a direct mail about food festivals and discounted meals that they can avail at the restaurant. C. A newspaper carries freestanding inserts about discounts customers can avail at a movie theatre. D. A magazine carries a shampoo sachet as a sample for customers to try out before buying more of the product. E. A clothing brand provides consumers coupons with which they can avail a discount on the woolen line of clothing.