When a Merger of Two Firms Is Achieved by One

question 70

Multiple Choice

When a merger of two firms is achieved by one firm,automatically assuming all the assets and all the liabilities of the other firm,such a merger requires:

• A)no shareholder meeting to vote.
• B)the approval of at least 50% of the stockholders (or as specified by corporate charters or state laws)of each firm.
• C)that the management of the two firms be tossed out.
• D)that the target firm search for alternative suitors.

---

Definitions:

Non-price Competition

A strategy by businesses to attract customers through methods other than lowering prices, such as quality improvement, marketing, or product differentiation.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry.

Market Share

The portion of a market controlled by a particular company or product.

Oligopolistic Models

Economic models that describe markets in which a few firms dominate, often leading to pricing and output decisions that consider the actions of competitors.