Answer Key

Raising finance – Practice 1

Choose the correct answer:
  1. The current trend is for groups to  [dispose of] non-core assets and activities in a process of restructuring, which allows them to focus on the ones they are best at doing and make the most profit from.
  2. A  [hostile] takeover bid is one undertaken against the wishes of the board of directors.
  3. When two businesses combine, achieving  [synergy] is easier said than done. Sometimes a merger does just the opposite and in many cases, one and one add up to less than two.
  4. Kola-Co has made a  [friendly] bid of 21p per share.
  5. We do many things but our  [core] activity is publishing.
  6. Eastern Water turned out to be our white  [knight] saving us from collapse.
  7. The process described in question six is also referred to as:  [divestment]
  8. Buying out the contracts of senior executives will be a poison  [pill] for any predator to swallow.
  9. As he gained experience and  [built up] capital at his first outlet, Mott began to win bids to run additional coffee shops in Chicago.
  10. Global Electric's latest  [acquisition] is Cambridge Electra. They bought it last month after a long negotiation process.