Which Two Factors Make Regulating Mergers Complicated

question 129

Multiple Choice

Which two factors make regulating mergers complicated?

• A)First, firms may lobby government officials to influence their decision to approve the merger. Second, by the time the government officials reach a decision regarding the merger, the firms often decide not to merge.
• B)First, the time it takes to reach a decision to approve a merger is so long that the firms often have new owners and managers. Second, by law, government officials are not allowed to consider the impact of foreign trade (exports and imports)on the degree of competition in the markets of the merged firms.
• C)First, the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice must both approve mergers. Second, the concentration ratios that are used to evaluate the degree of competition the merged firms face are flawed.
• D)First, it is not always clear what market firms are in. Second, the newly merged firm might be more efficient than the merging firms were individually.

Identify the key principles of the Consumer Bill of Rights and its impact on consumer protection.

Understand the ethical considerations in information exchange including privacy policies and economic espionage.

Discuss how business cultures affect ethical behavior in exchanges between sellers and buyers and in competition.

Explain how culture serves as a socializing force influencing moral and ethical behaviors.

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Definitions:

Supply Chain Management

The oversight and management of the flow of goods and services, including all processes that transform raw materials into final products.

Sophisticated Information Technology

Advanced systems and tools that manage, process, and disseminate large volumes of data efficiently, supporting complex analysis and decisions.

Supply Chain Manager

A professional responsible for overseeing and managing the entire supply chain operations to ensure efficiency, cost-effectiveness, and timely delivery of goods or services.

Automobile Industry

A sector of the economy that encompasses a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles.