"If an Industry's Herfindahl-Hirschman Index Is Below 1,000, a Merger

question 230

Essay

"If an industry's Herfindahl-Hirschman Index is below 1,000, a merger between any two firms in that industry will be disallowed." Comment on the accuracy of the previous statement.

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Definitions:

Corporate Headquarters

The main office or center of operations for a corporation, where key administrative and managerial activities take place.

Operating Segments

Components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources.

Manufacturing Operations

Processes involved in the conversion of raw materials or components into finished goods that meet a company's quality standards and customer expectations.

Operating Segments

Components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.