BBS 4th Fourth Year Notes Online PDF TU Notes Finance Notes BBS

BBS Notes Online collection of TU. BBS 4th Fourth Year Notes Online PDF View Download. View BBS Bachelor of Business Studies subject notices of various years & semesters. BBS notes with syllabus model question & BBS notes first 1st Year, BBS notes 2nd Second Year, BBS Notes 3rd Third Year & BBS notes 4th fourth-year notes. View the TU Notes collection in PDF. Students are requested to view and download all TU Faculty notes from given link below.

The Faculty of Management (FoM), at Tribhuvan University has its ultimate objective of educating students for professional pursuits in business, industry, and government. It is further dedicated to enhancing the knowledge and understanding of business and public administration.

BBS 4TH Year Notes- Corporate Finance – Merger & Acquisition Related question

Analytical Answer Questions: Source by Pujan Karki

Define mergers and acquisitions. Describe the concepts of horizontal, vertical, and conglomerate mergers. Also, explain the growing need of mergers and acquisitions in banks and financial institutions in Nepal.

Meaning of Merger and Acquisition Merger is a combination of two or more. Corporations maintain the identity of one of the corporations. In other words, the merger is combining two Corporations where one Corporation will continue to exist and the other loses its corporate existence. The surviving corporation acquires the assets and Liabilities of the merged one. In a merging process, the less important corporation loses its corporate identity and becomes a part of the more important corporation that retains its identity.

Acquisition is the process of acquiring the assets. In the course of the merger. It, in a general sense, refers to acquiring ownership in the property. In other words, the acquisition refers to the acquisition of assets by one corporation from another corporation. The acquiring corporation will remain in business and the acquired corporation, which is also called the target corporation, will be integrated into the acquiring corporation and thus, the acquired corporation ceases to exist after the merger.

The concepts of Horizontal, vertical, and conglomerate mergers are:

1) Horizontal mergers:
In a horizontal merger, two corporations are merged across similar products or services. It is a combination of two or more merger firms in the same area of business. Horizontal is often used as a way for a corporation to increase its market share by merging with a competing company. The main in purpose of production of this merger and merger is to obtain economic operation by economy of Scale eliminating duplication of facilities, reducing competition, reduction in cast, increase in stock price, and expansion in market segments. An example of a horizontal merger in the past in the case of Nepal was the case of merger between National Finance Limited and Narayani Finance Limited. This type of merger has allowed both finance companies a larger share of the financial sector.

2) Vertical mergers:
In a vertical merger, two corporations are merged along the value chain, such as a manufacturer merging with a supplier. It is a combination of two or more Corporations involved in different stages of production or distribution of the same product vertical mergers are often used as a way to gain a competitive advantage within the marketplace. The main purpose of this type of merger is to increase profitability. the vertical merger takes two forms! f00 forward integration and backward integration Forward integration refers to the combination with a customer firm and backward integration refers to the merging with a supplier firm.

3) conglomerate mergers:
Corporations engaged in different lines of business. conglomerates are generally used as a way to smooth out wide fluctuations in earnings and provide more consistency in the long term.
In a conglomerate merger, two corporations in completely different industries merge, such as a petroleum corporation Umerging Corporation. In other words, information technology is a combination of foo their businesses conglomerate mergers fake many forms ranging from short-term joint ventures to complete mergers.
growth. Typically, in this type of merger, corporations in mature industries with poor prospects for growth will seek to diversify

=> View BBS Online Notes PDF Files Part 1