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16. Kojack Film needs silver to make photographic film.To ensure that they will have an ample supply of silver at areasonable price, the company purchases a silver mine. This is anexample of a(n) _____________.A. horizontal acquisitionB. hostile takeoverC. acquisition of liquid assetsD. conglomerate acquisitionE. vertical acquisition17. FirstGuppy Corp. has just received a purchase offerfrom FirstShark, an unfriendly suitor. Instead of accepting theoffer, FirstGuppy attempts to merge with FirstMolly, a friendlyalternative suitor. FirstMolly is a ______ in thisinstance.A. golden parachuteB. shark repellentC. white knightD. crown jewelE. lockup18. Which of the following represent potential gainsfrom an acquisition?I. The replacement of ineffective managersII. Lower costs per unit producedIII. An increase in firm size so that diseconomies of scale arerealizedIV. Spreading of overhead costsA. II and III onlyB. I and IV onlyC. I, II, and IV onlyD. I, III, and IV onlyE. I, II, III, and IV19. One legitimate advantage to leasing isthat:A. Leasing provides 100% financing.B. Leasing provides a source of off-balance sheet financing.C. By leasing, the lessee's income statement will bestronger.D. Taxes may be reduced by leasing.E. Unlike borrowing and purchase, leasing decreases a firm'sfinancial leverage.20. Which of the following describe(s) a financiallease?I. The lease is cancellable at the option of the lessee.II. The term of the lease is usually long-term.III. The lessee is typically required to maintain the asset.A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and III