Table 252 Refer to Table 25

question 122

Multiple Choice

Table 25.2 $$\begin{array} { | l | r | c | } \hline { \text { Pool Sweeper } } & \text { Output (Revenue) } & \text { Market Share (\%) } \\\hline \text { North Star } & \$ 20,000 & \\\hline \text { Hurricarne } & \$ 16,000 & \\\hline \text { Blue Lagoon } & \$ 2,000 & \\\hline \text { Clean Sweep } & \$ 2,000 & \\\hline\end{array}$$ Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.The U.S.Justice Department would most likely

• A)Allow a merger between North Star and Blue Lagoon.
• B)Allow a merger between Hurricane and Blue Lagoon.
• C)Allow a merger between Blue Lagoon and Clean Sweep.
• D)Not allow any mergers among firms in this industry.

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Definitions:

Short-term Note

A financial instrument typically due for repayment within one year, often used for short-term financing needs.

Long-term Debt

Refers to loans or other forms of financial obligations that are due for repayment beyond the next year or operating cycle.

Assets Financed

The acquisition of assets (e.g., equipment, property) using debt or other financial instruments rather than direct payment.

Debt To Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.