Which of the Following Statements About the Merger Movement of the Late

question 60

Multiple Choice

Which of the following statements about the Merger Movement of the late nineteenth century is most accurate?

• A)Investment bankers played an insignificant role in the mergers that created enormous new corporations.
• B)The merger movement resulted partly from economic weaknesses, partly in response to the threat of vicious competition among reviving manufacturing companies.
• C)Andrew Carnegie successfully fought off J.P. Morgan's hostile bid on this United States Steel Corporation.
• D)In their organization of mergers, J.P. Morgan and other investment bankers were looking for short term gains at the cost of long-term stability.

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Definitions:

Risk Aversion

The tendency of individuals to prefer outcomes with lower uncertainty over outcomes with higher uncertainty, even if the latter may offer a higher expected return.

Equilibrium Premium

The price at which the supply and demand for insurance coverage balance, setting a market rate for premiums.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the point where the supply and demand curves intersect.

Diminishing Marginal Utility

The principle that says additional units of a good or service provide less added satisfaction than previous units.