The Threshold for Pre- Merger Notification in Canada for Certain

question 4

Multiple Choice

The threshold for pre- merger notification in Canada for certain transactions is met if

• A) the value of the target firm or the assets being acquired exceeds $40 million or where the combined revenues of the entities involved exceed $400 million per year.
• B) the entities involved are worth more than $100 million or their combined revenues exceed $400 million per year.
• C) the entities involved are engaged in bid- rigging and their combined revenues exceed $400 million per year.
• D) there is an abuse of dominant position and the combined revenues of the entities involved exceed $400 million per year.
• E) the value of the target firm or the assets being acquired exceeds $70 million and the combined assets or revenues of the entities involved and their affiliates exceed $400 million per year.

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Definitions:

Marginal Cost

The outlay involved in the creation of an additional unit of a good or service.

Pareto Efficient

An economic state where resources are allocated in a way that it is impossible to make any one individual better off without making at least one individual worse off.

Efficiency

A measure of how well resources are used to achieve a goal, maximizing output from given inputs without waste.

Equity

The concept of fairness or justice, often discussed in the distribution of wealth, or the ownership interest in a firm.