In Which Merger Type Would It Be Least Likely to Observe

question 103

Multiple Choice

In which merger type would it be least likely to observe economies of scale?

• A)Horizontal
• B)Vertical
• C)Conglomerate
• D)It is equally likely to observe economies of scale in all merger types

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Definitions:

Preexisting Duty Rule

A legal principle that asserts no additional consideration is necessary to modify a contract when a party is already legally obligated to perform a duty.

Bilateral Contract

A type of agreement where both parties make a promise to each other to perform certain acts or refrain from performing certain acts.

Liquidated Debt

A debt with a fixed and determinable amount that is agreed upon by both parties.

Accord And Satisfaction

A legal concept where parties to a dispute resolve their differences through a mutually agreed upon solution, often involving payment in exchange for dropping a claim.