Which of the Following Is True Only of a Consolidation

question 26

Multiple Choice

Which of the following is true only of a consolidation?

• A) More than two firms are involved in the combination
• B) One party to the combination disappears
• C) All parties to the combination disappear
• D) The entity resulting from the combination assumes ownership of the assets and liabilities of the acquiring firm only.
• E) One company becomes a wholly owned subsidiary of the other.

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Definitions:

Herfindahl-Hirschman Index

A measure of market concentration that is used to determine the level of competition within an industry.

Dental Insurance

A form of health insurance designed to cover part of the costs associated with dental care.

Oligopolies

Market structures in which a few companies dominate the industry, limiting competition and potentially leading to higher prices for consumers.

Collusion

A secret or illegal cooperation between parties, typically to cheat or deceive others, often seen in contexts like business practices or trade.