The Mars Acquisition of the Wrigley Assets Was Part of Its

question 153

Multiple Choice

The Mars acquisition of the Wrigley assets was part of its related constrained diversification and added market
Share to the Mars/Wrigley integrated firm. It allowed Mars to gain the market level or reduce its costs below the market level.

• A)multipoint competition
• B)virtual integration
• C)market power
• D)vertical integration

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Definitions:

Investment-Banking Firm

A financial institution that assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities.

Underwriting Syndicate

A group of investment banks that work together to issue new securities to the market, sharing the risk and responsibility of selling the offering.

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses on trades.

Initial Margin

The minimum amount of capital required to open a new position in a securities account.