Which of the Following Statements About the Per Se Rule

question 172

Multiple Choice

Which of the following statements about the per se rule and the rule of reason antitrust doctrines is true?

• A) under rule of reason, only proof of an antitrust violation is needed for the courts to rule the firm violates antitrust laws
• B) under per se, the court rules that the actions of the firm are not justified given the weight of the evidence
• C) under rule of reason, the court rules that any violation of antitrust legislation is illegal
• D) under per se, if precedent found a business action to be illegal it always remains illegal
• E) none of the other choices

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Definitions:

Equity Method

An accounting technique used to record an investor’s proportional share of an associate company’s profits or losses on its financial statements.

Fair Value Enterprise Method

An approach to valuing a business by estimating the present value of foreseeable future earnings and the net asset value.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not have full control.

Dividends

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.