The Competition Bureau Will Prevent a Merger from Taking Place

question 26

Multiple Choice

The Competition Bureau will prevent a merger from taking place if

• A)the merger will prevent or reduce competition substantially.
• B)the merger will prevent or reduce competition in the slightest.
• C)the merger will result in higher profits for the merged firms.
• D)the merger will increase market concentration.

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Definitions:

Equity Method

A method of accounting for investments, where the investor recognizes its share of investee's profits and losses in its own income statement, typically used when the investor has significant influence over the investee.

Noncontrolling Interest

The portion of equity in a subsidiary held by investors other than the parent company, representing a minority stake that does not give its holders control over the company.

Intra-entity Purchases

Buying activities of goods or services conducted between departments or divisions within the same entity.

Equity Method

An accounting technique used to assess the profits earned by an investment in another company, recognizing such profits proportional to ownership share.