Most Acquisitions That Are Designed to Achieve Greater Market Power

question 63

True/False

Most acquisitions that are designed to achieve greater market power entail buying a competitor, a supplier, a distributor, or a business in a highly related industry.

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Definitions:

Automobile Dealerships

Businesses that specialize in selling new or used cars at the retail level, often under a dealership contract with an automaker.

Straight Piecework

An incentive plan under which employees receive a certain rate for each unit produced.

Unit Produced

A measure of output that quantifies the total amount of goods or services produced by an individual, team, or organization within a given timeframe.

Piecework

A payment model where workers are compensated based on the amount of work completed, instead of receiving a fixed hourly wage.