Define takeover

Q: What are the attributes associated with a successful acquisition strategy?

A: Acquisition: Acquisition refers to when one company purchases a another company’s share partly or…

Q: What has been the rationale for LVMH acquisitions

A: Question is based on the concept of business management

Q: Differentiate between the Passing of Risk and the Passing of Ownership.

A: when the goods are sold the risk remains with the seller until the property in the goods is…

Q: Define corporation

A: Corporation is a legal entity separate from its shareholders. Just like an individual, a corporation…

Q: What is partial public offering?

A: Public offering is sale of shares to the general public. The company issue shares and raise through…

Q: Define defensive merger

A: Answer: Defensive merger means a merger in which a firm joins with other firm to avoid takeover by a…

Q: What is merger?

A: Merger: It is a deed that joins 2 existing firms into one new endeavor. There are a few sorts of…

Q: Define competitive bids (security offerings)

A: Competitive bidding is the procedure where multiple vendors are invited to offer their prices for…

Q: Explain vendor exploitation.

A:

Q: Explain how a company can use forward contracts to eliminateFX risk

A: Introduction: A forward contract is a contact between two parties regarding the future selling price…

Q: Explain the issues involved in setting the bid price.

A: Bid price: The price that is offered for a commodity, service, and product is called bid price. It…

Q: Explain replicating portfolio

A: A pool comprising of various stocks, financial assets, currencies, and bonds, closed or mutual funds…

Q: Define acquiring company

A: The acquisition means when one company buys the more than 51% stake in another company. Companies…

Q: Explain the classes of shares and their characteristics.

A: Shares can be defined as the units of ownership interest in the company. They are provided dividends…

Q: Define tender offer

A: Tender: A tender is an invite to bid for a scheme or take an official proposal like a takeover bid.

Q: Define targeted share repurchases

A: One targeting firm tries to avoid a hostile acquisition by purchasing a prospective customer's own…

Q: Define Franchise.

A: There are several forms of business like the sole proprietorship, partnership and corporation which…

Q: Define each of the following terms:b. Enterprise risk management

A: Definition of Enterprise Risk Management   Enterprise risk management (ERM) is a plan-based business…

Q: Briefly describe some of the anti-takeover measure used.

A: Companies are either reducing the competition or adjusting with them. This can be done with the help…

Q: Define maturity value

A: Maturity date: Maturity date is the due date on bond. On due date, the issuer is supposed to pay the…

Q: Define bid-ask spread

A: Introduction: The concept of bid-ask spread is related to options trading strategies. Option is a…

Q: Define purchase option.

A:

Q: Define Liquidation?

A: Liquidation is the process through which an entity comes to an end and is being formally closed. It…

Q: What is the difference between a competitive bid and a negotiateddeal?

A: Negotiated deal: A negotiated bid contains only one general contractor who works in the best…

Q: Define Security Market Line (SML

A: When the cost of equity obtained from CAPM model is graphically presented, it is known as Security…

Q: Define convertible security

A: A convertible security is a security that can be changed into another form of investment. The most…

Q: Define S corporation

A: The S corporation is a tax election that legal business entities can choose to elect for taxes…

Q: What is horizontal merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

Q: What is hostile merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

Q: Define each of the following terms.e. Convertible security

A: Introduction: Usually, a security is nothing but a financial instrument and it is a tradable…

Q: Differentiate between public and private syndications?

A: Syndicate: A syndicate is a provisional agreement of businesses that connects together to manage a…

Q: Define signaling hypothesis (dividends)

A: Introduction: This question is based on the concept of dividend theories in capital structure is…

Q: Explain the fair value option.

A: Fair Value Option: It is a process of measuring the financial assets and liabilities using the fair…

Q: Differentiate and elaborate bid rate and offer rate.

A: Following is the answer to the question.

Q: Differentiate between private and public markets.

A: There are two types of markets for dealing with securities like stocks & bonds. They are public…

Q: Define roll-up merger

A: Roll-up merger: It is a consolidation process in which two or more companies are combined to form…

Q: Describe some takeover defenses.

A: Introduction: Defensive tactics: Frequently the managers of target firm oppose the attempts of…

Q: Define divestiture

A: Introduction: A divestiture might happen when a business unit is thought to be redundant afterward…

Q: What is a “convertible security”?

A: Securities: Securities refers to a negotiable financial instrument that holds some type of monetary…

Q: Define underwriting syndicate

A: An underwriting syndicate is headed by a bank known as the lead underwriter. It is a group of banks…

Q: What is negotiated deals (security offerings)?

A: Negotiated deals are usually referred to in the context of fixed-income securities. The parties…

Q: Define put option

A: An Option is an contract sold by one party to another, that gives the buyer  the right, but not the…

Q: What is merger waves?

A: A merger is an agreement under which two existing companies unite into one new company. Mergers are…

Q: Define the term Principles of Consolidation.

A: To solidify (solidification) is to join resources, liabilities, and other monetary things of at…