Consider a recent merger between two major corporations. Describe the terms of the merger (cash or stock, premium, changes in management / directors, etc.). Explain the motivations behind these terms and whether you feel that these are appropriate.

Using examples from news reports within the last one year about public companies, explain how the concepts of adverse selection and moral hazard. Describe the problems created in these situations and the extent of the problems that this has created for the firms. How have these firms attempted to reduce these problems?