R&M Chatelaine Is One of the Largest Tax-Preparation Firms in the United

question 14

Multiple Choice

R&M Chatelaine is one of the largest tax-preparation firms in the United States. It wants to acquire The Tax Experts, a smaller rival. After the merger, Chatelaine will be one of the two largest income-tax preparers in the U.S. market. What should Chatelaine include in its acquisition plans?

• A) It should refocus its attention from the national to the international market.
• B) In addition to acquiring The Tax Experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business.
• C) Chatelaine will need to explain to the Federal Trade Commission how the acquisition will not result in an increase in prices for consumers.
• D) Chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.

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Definitions:

Conscience

An inner sense of right and wrong that guides a person's thoughts and actions.

Ego Ideal

The component of the personality composed of the standards of what one aspires to be, based on societal values and parental expectations.

Personality Component

Elements or traits that constitute an individual's distinctive character and psychological identity.

Moral Conscience

An internal sense of right and wrong that guides an individual's actions and decisions.