To Say That a Business Proposal to Do Something Different

question 24

Multiple Choice

To say that a business proposal to do something different inside a company has distributional consequences means that:

• A) the warehouse will be overstocked if the proposal is ratified and implemented.
• B) the company will not be able to use its current distribution marketing channels.
• C) some managers will benefit from implementation and others will lose.
• D) dividends will no longer be paid on the stock each quarter.

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Definitions:

Tying Contracts

Agreements where a seller conditions the sale of one product (the tying product) on the buyer's agreement to purchase a separate product (the tied product).

Horizontal Merger

A merger between firms in the same industry operating at the same level of the production process, often aimed at reducing competition and achieving economies of scale.

Conglomerate Merger

A type of merger where two or more companies operating in completely different industries join forces or come under the control of one company.

Vertical Merger

A merger between two companies that operate at different stages within the same industry supply chain, enhancing efficiency or reducing costs.