If a Price Floor Is Removed, Which of the Following

question 129

Multiple Choice

If a price floor is removed, which of the following would be a result?

• A)The elimination of surpluses
• B)Problems with the disposal of goods
• C)Disguised discounts to sell additional goods are offered by sellers
• D)Overinvestment in the industry

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Definitions:

Distribution

Payment made by a firm to its owners from sources other than current or accumulated earnings.

Going-Private Transaction

A corporate action in which a company's outstanding public shares are bought out, usually by a private investor, to delist it from public stock exchanges.

Reverse IPO

A process where a private company becomes publicly traded by acquiring a majority stake in a public company, bypassing traditional initial public offerings (IPO) processes.

Synergistic Benefits

The additional value created by combining two companies, often resulting in efficiencies or enhanced market power.