Because the Act (Enacted in 1890) Was Aimed at Monopolies

question 69

Multiple Choice

Because the Act (enacted in 1890) was aimed at monopolies that called themselves trusts, it was called a(n) statute.

• A) Clayton; antitrust
• B) Clayton; fiduciary
• C) Sherman; antitrust
• D) Sherman; fiduciary

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Definitions:

Capital

Financial resources or assets owned by a business or individual that are useful in furthering development and generating income.

Debt

An amount of money borrowed by one party from another, under the condition of repayment with interest.

Interest Tax Benefit

The financial advantage gained through deducting interest payments on debt from taxable income.

MM Model

Modigliani-Miller Model; a theory on capital structure that suggests the market value of a firm is determined by its earning power and the risk of its underlying assets.