Core Concepts
What is the term used when two companies combine to form one new company in order to increase their competitiveness and efficiency?
Merger
What type of merger occurs between two companies that operate in the same industry and produce similar products?
Horizontal merger.
What economic advantage allows companies to reduce costs by producing goods on a larger scale after merging?
Economies of scale.
What risk occurs when employees from two companies cannot adapt to each other’s working styles and values?
Cultural conflict.
This animated movie tells the story of a young lion named Simba who must accept his role as king after the death of his father.
The Lion King.
What is the process called when one company buys another company and takes full control over its operations and decisions?
Acquisition.
What type of merger happens when a company combines with another company at a different stage of the production process?
Vertical merger.
What opportunity allows companies to enter new countries and reach new customers through M&A?
Market expansion.
What is the financial risk called when a company pays more than the real value of another company during acquisition?
Overvaluation.
This movie is about a snow queen with magical ice powers and her sister Anna, and it includes the famous song “Let It Go.”
Frozen.
What strategy do companies use when they grow by merging with or acquiring other companies instead of developing internally?
External growth strategy.
What do we call a merger between companies that operate in completely different industries?
Conglomerate merger.
What benefit involves sharing knowledge, skills, and technologies between two companies?
Knowledge transfer.
What problem arises when a company borrows too much money to finance an acquisition?
High debt level.
In this animated film, a young clownfish travels across the ocean with a forgetful blue fish to find his lost son.
Finding Nemo.
What is the concept called when two companies together create more value than they could separately?
Synergy.
Which type of merger is mainly used to reduce competition in the same market?
Horizontal merger.
What financial result occurs when investors gain confidence and the company’s value increases after a successful merger?
Increased shareholder value.
What operational issue occurs when two companies fail to successfully combine their systems and processes?
Integration failure.
This movie features a house lifted by thousands of balloons and an old man who travels to South America with a young boy scout.
Up.
What is the main goal of many M&A deals where companies aim to dominate the market and reduce competition?
Increasing market power.
Which type of merger helps a company control its supply chain and reduce dependence on suppliers?
Vertical merger.
What advantage helps companies develop new products faster after combining resources?
Improved innovation capability.
What is the most common reason why many M&A deals fail due to weak planning and poor leadership?
Poor planning and management.
This animated film is set in a world where emotions like Joy, Sadness, Anger, Fear, and Disgust live inside a girl’s mind and control her feelings and actions.
Inside Out.