If Microsoft Were to Acquire Dell Computer,it Would Be an Example

question 79

Multiple Choice

If Microsoft were to acquire Dell Computer,it would be an example of a:

• A) vertical merger.
• B) horizontal merger.
• C) conglomerate merger.
• D) distribution-channel merger.

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Definitions:

Confidence Index

A measure often used to gauge the sentiment or optimism among investors about the future economic outlook.

Short Interest

The aggregate amount of a specific stock's shares that investors have short sold and are yet to close or cover.

Diminishing Marginal Utility

A principle stating that as a person increases consumption of a product, there is a decline in the additional satisfaction a person gains from consuming one more unit.

Prospect Theory Loss Aversion

A concept from behavioral economics indicating that people feel the pain of losing money more acutely than they feel the pleasure of gaining the same amount.