Inshorts Pvt. Ltd. is hiring candidates for its new growth project. The HR team is conducting a campus placement drives in colleges. Since the position is required for growth project, HR asked one of the candidates whether the value of a merged firm will be greater or equal to the two independent firms. The candidate responded confidently that the value of a merged firm will be greater than the sum of two independent merging firms. Keeping in mind the above scenario, state whether the candidate has given a true statement or not.
Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.
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Growth is always an essential part of a business for its existence. A business can only survive in the market and earn more profits if it grows from time to time. Rohan and Seema are planning to expand their business. They have started formulating growth strategies. Rohan has suggested a few ways to Seema which they can adopt. According to Rohan, they may expand the firm using external growth strategies. A few of them includes, Franchising, Mergers and Acquisitions. Keeping Rohan’s suggestion in mind, state whether it is true or not.
Given below are the types of acquisitions with their meanings. Match them correctly.
Given below are the mergers with examples of each. Match them correctly.
State Whether the Following Statements are True or False.
Q. Internal expansion results from the gradual increase in the activities of the concern.
State Whether the Following Statements are True or False.
Q. The operations manual is the part of the agreement that outlines the type of relationship a franchisee is entering into with the franchisor.
State Whether the Following Statements are True or False.
Q. In business format franchise opportunity approach, a company provides a business owner with a proven method for operating a business using the name and trademark of the company.
State Whether the Following Statements are True or False.
Q. The person offering the franchise is known as the franchisee.
State Whether the Following Statements are True or False.
Q. A merger occurring between companies in the same industry is vertical merger.
State Whether the Following Statements are True or False.
Q. During mergers and acquisitions, the value of the combined entity is expected to be greater than the sum of the independent values of the merging firms.
State Whether the Following Statements are True or False.
Q. The merger between the Walt Disney Company and the American Broadcasting Company is an example of conglomerate merger.