Which Two Factors Make Regulating Mergers Complicated

question 99

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 mangers. 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.

Know the provisions of the Mortgage Reform and Anti-Predatory Lending Act of 2010.

Recognize the extent of lemon laws, including coverage for used cars and motorcycles.

Comprehend the roles and formation of the Consumer Financial Protection Bureau.

Identify consumer rights under the Fair Credit Reporting Act.

---

Definitions:

Osteomalacia

The softening of the bones due to vitamin D deficiency or inadequate calcium absorption.

Appositional Growth

A method of growth by which new layers are added on the surfaces of existing tissues, seen in bone and cartilage development.

Electrical Charge

A physical property that causes matter to experience a force when placed in an electromagnetic field, characterized by being positive or negative.

Osteoblasts

Cells with the primary function of synthesizing bone, playing an essential role in bone growth and repair.