Exercise 1: Fill in the blanks

Complete the sentences with the correct vocabulary word from the list:

1. It's essential for businesses to __exercise due dligence_ before entering into any major contracts to avoid legal issues.

2. The government has strict __antitrust laws____ in place to prevent monopolies and promote fair competition in the market.

3. Negotiations often involve both parties being willing to __make concessions_____ in order to reach a mutually beneficial agreement.

4. The __watchdogs___ are organizations responsible for monitoring and ensuring compliance with regulations in various industries.

5. Before launching a new product, companies need to __get clearance_ from relevant authorities to ensure it meets safety standards.

6. The parent company controls a __subsidiary_____, which operates as a separate entity but is owned or controlled by the parent.
Exercise 2: Usage in Context
Create sentences using the vocabulary terms:

1. Write a sentence demonstrating the importance of a company exercising due diligence before entering a new market.
2. Use the term "make concessions" in a sentence related to a business negotiation scenario.
3. Explain the role of antitrust laws in ensuring fair competition in the marketplace.
4. Provide a sentence describing the function of watchdogs in monitoring industry practices.
5. Describe a situation where a company needs to get clearance from relevant authorities.
6. Write a sentence explaining the concept of a subsidiary company and how it relates to its parent company.
Exercise 3: Case Study Analysis
Read the following case study and answer the questions using the provided vocabulary terms:

Case Study:

A multinational corporation is considering a merger with a smaller competitor. The management team wants to ensure a
smooth transition and compliance with regulations.

Questions:

1. How can the company exercise due diligence before finalizing the merger?
2. Explain how the negotiation process might involve the need to make concessions from both parties.
3. Discuss the potential implications of antitrust laws on the proposed merger and how the company can navigate these
regulations.
4. Identify the role of watchdogs in overseeing the activities of the merged company and ensuring compliance with
industry standards.
Questions:

● Why is exercising due diligence described as an essential step for companies contemplating major initiatives?

● How did the negotiation process between XYZ Inc. and the startup involve the need to make concessions beyond
financial considerations?

● Explain the role of antitrust laws in adding complexity to the merger discussions between XYZ Inc. and the startup.

● How did industry watchdogs contribute to the assurance of legal and ethical standards in the merger process?

● Outline the key steps involved in XYZ Inc. obtaining clearance for the merger from regulatory bodies.

● How did the strategic use of subsidiary companies benefit XYZ Inc. after the merger?