Assume That Three Automobile Manufacturers All Merged into One Car

question 23

Multiple Choice

Assume that three automobile manufacturers all merged into one car company.Such a merger would be a

• A)vertical merger.
• B)vertical cooperative arrangement merger.
• C)horizontal merger.
• D)intracompetitive merger.

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Definitions:

Profit

The income earned when the total revenue from business activities surpasses all related expenses, costs, and taxes.

Clearinghouse

A financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions.

Exercise

In finance, it refers to the act of executing one's right to buy or sell the underlying asset in options trading.

Futures Contract

A standardized agreement to buy or sell a specific asset at a predetermined price at a specified time in the future.