Which of the Following Statements Best Describes Mergers

question 60

Multiple Choice

Which of the following statements best describes mergers?

• A) The high Canadian dollar relative to foreign currencies makes Canadian companies comparatively inexpensive to foreign buyers, spurring many mergers.
• B) The expansion of the junk bond market makes debt more freely available for large acquisitions and LBOs, resulting in an increased level of merger activity.
• C) Increased nationalization of business and a desire to scale down and focus on producing in one's home country may virtually halt international mergers.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually pay.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Actual Price

The price at which a good or service is sold, not considering discounts or adjustments.