A Merger Wave Can Be Set Off

question 73

Multiple Choice

A merger wave can be set off

• A)by government restrictions that prevent firms from reaching their minimum efficient scale
• B)if the federal government raises corporate income taxes.
• C)if the federal government lowers corporate income taxes
• D)if minimum efficient scale falls
• E)by some change in a market,such as a shift in market demand.

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Definitions:

Warranty

A guarantee provided by a manufacturer or seller regarding the condition of a product and the promise to repair or replace defective parts within a specified period.

Replevin

A legal action to recover personal property that has been wrongfully taken or retained.

Cover

In contracts, especially concerning the sale of goods, the act of obtaining replacement goods or services when a seller fails to fulfill their obligations.

Security Interest

A legal claim or right granted over an asset to secure the payment of a debt or performance of some other obligation.