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Tutorial 1

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3. Company pays some of the profits of the company to the 1. Two or more businesses in combination will create greater
shareholders shareholder value than if they are operated separately
5. Use debt to purchase a company 2. Company rids of a business unit through sell, exchange, closure,
8. Company lowers risk by expanding into many different markets or bankruptcy

10. Investors profit from small differences between the offer price 4. Pride
for a target firm and its actual share price 6. Company creates a new independent company from one of its
11. Single company is the only seller in the market business units
7. Combine two or more firms in which all but one cease to exist
legally
9. One shareholder has permission to vote for other shareholders

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