The Celler-Kefauver Act of 1950: ​

question 171

Multiple Choice

The Celler-Kefauver Act of 1950: ​

• A) ​amended the Sherman Act to outlaw price fixing where the effect is to lessen competition.
• B) ​created the Interstate Commerce Commission.
• C) ​ prohibited conglomerate mergers where the effect is to lessen competition.
• D) ​prohibited a firm from acquiring the assets of another firm where the effect is to lessen competition.

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Definitions:

IRR

Internal Rate of Return - a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often considered in depreciation calculations and asset disposal decisions.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not influence future business decisions.

Basic Overheads

The routine, essential expenses incurred in the operation of a business, such as rent, utilities, and salaries.