Which of the following is NOT a type of corporate restructuring?
a) Financial restructuring
b) Organizational restructuring
c) Managerial restructuring
d) Consumer restructuring
Which of the following is a primary goal of corporate restructuring?
a) Maximizing shareholder wealth
b) Increasing employee layoffs
c) Reducing customer base
d) Avoiding competition
Which of the following is a method of financial restructuring?
a) Mergers and acquisitions
b) Issuing new shares
c) Changing office locations
d) Hiring new employees
What does corporate restructuring typically involve?
a) Business process improvement
b) Reducing operational efficiency
c) Increasing employee salaries only
d) Eliminating competition
Which of the following is a key reason for corporate restructuring?
a) Declining profitability
b) Employee job satisfaction
c) Increased advertising costs
d) Customer service improvement
Which of the following best defines liquidation?
a) Selling off assets to repay creditors
b) Merging with another company
c) Expanding business operations
d) Hiring new management
Which type of liquidation is court-ordered?
a) Voluntary liquidation
b) Compulsory liquidation
c) Friendly liquidation
d) Private liquidation
In a voluntary liquidation, who decides to liquidate the company?
a) Government
b) Creditors
c) Shareholders
d) Employees
Which of the following is NOT a form of restructuring?
a) Divestment
b) Spin-off
c) Merger
d) Inflation
What happens to a company’s liabilities during liquidation?
a) They are ignored
b) They are transferred to a new company
c) They are settled using the company’s assets
d) They are converted into shares
Which of the following is a method of corporate restructuring?
a) Mergers
b) Takeovers
c) Spin-offs
d) All of the above
What is the main reason for financial restructuring?
a) Increasing tax burden
b) Improving financial stability
c) Expanding workforce
d) Launching new marketing campaigns
Which of the following is a major risk of corporate restructuring?
a) Higher employee morale
b) Increased regulatory scrutiny
c) Lower operational efficiency
d) Expanding into new markets
What does a merger involve?
a) One company buying another
b) Two companies combining to form a new entity
c) Selling company assets
d) Closing business operations
Which of the following occurs when a company sells off a business unit?
a) Acquisition
b) Divestiture
c) Liquidation
d) Merger
What is the role of a liquidator in company liquidation?
a) Expand business operations
b) Oversee asset sales and debt repayments
c) Hire new employees
d) Manage day-to-day operations
Which type of restructuring focuses on changing a company’s legal structure?
a) Financial restructuring
b) Organizational restructuring
c) Legal restructuring
d) Marketing restructuring
Which of the following is an example of corporate restructuring?
a) Closing a loss-making division
b) Increasing employee salaries
c) Expanding the workforce
d) Maintaining status quo
Which type of restructuring involves cost-cutting measures?
a) Operational restructuring
b) Financial restructuring
c) Organizational restructuring
d) Legal restructuring
Which of the following is an indicator of corporate distress?
a) Rising profits
b) Increasing debt burden
c) High employee motivation
d) Increased production efficiency
Which financial metric is commonly assessed before restructuring?
a) Market share
b) Earnings before interest and taxes (EBIT)
c) Number of employees
d) Advertising budget
Which type of acquisition occurs when one company takes control of another without its consent?
a) Friendly takeover
b) Hostile takeover
c) Merger
d) Joint venture
Which factor influences corporate restructuring decisions?
a) Competitive pressures
b) Employee preferences
c) Customer complaints
d) Increased social media presence
Which is a key financial reason for liquidation?
a) Excessive losses and debts
b) High customer retention
c) Rising employee productivity
d) Expansion into new markets
Which legal document is required to initiate liquidation?
a) Balance sheet
b) Income statement
c) Liquidation petition
d) Shareholder agreement
What is a key advantage of corporate restructuring?
a) Improved efficiency and profitability
b) Higher operational costs
c) Reduced market share
d) Increased employee turnover
Which of the following describes a spin-off?
a) Selling the entire company
b) Separating a division into an independent entity
c) Liquidating assets
d) Acquiring a competitor
What is the outcome of corporate liquidation?
a) Company continues operations
b) Company ceases to exist
c) Company expands
d) Company enters a new market
