1. After developing a prospect base, targets are screened (or organized) for contact prioritization. Which of the following can be used for screening criteria?

a. Market share, product line, and profitability

b. Product line, profitability, and growth rate

c. Profitability, leverage, and growth rate

d. Degree of leverage, market share, and growth rate

e. All of the above

2. All of the following statements are true about Letters of Intent, except for: 

a. They are always legally binding

b. They spells out the initial areas of agreement between the buyer and seller

c. They define the responsibilities and rights of the buyer and seller while the Letter of Intent is in force

d. They includes an expiration date

e. They can include a no shop provision

3. All of the following are true about a Confidentiality Agreements except for:  

a. They apply to both the buyer and the seller

b. They stipulates the type of seller information that will be made available to the buyer and how the information can be used

c. They limit the use of information about the seller that is already publicly available

d. They include a termination date

e. They limit the ability of either party to disclose publicly the nature of the discussions between the buyer and seller

4. The final price to be paid by the buyer for a target firm is determined when:  

a. The initial offer is made

b. At the end of the negotiation process

c. When the letter of intent is signed

d. Following the completion of due diligence

e. When the Definitive Purchase Agreement is signed

5. Consideration is a legal term referring to the composition of the purchase price paid by the buyer for the target firm. It may consist of which of the following:   

a. Cash only

b. Stock only

c. Debt only

d. Cash and stock only

e. Cash, stock, debt and other consideration