Which One of the Following Is Most Likely to Increase

question 169

Multiple Choice

Which one of the following is most likely to increase the Herfindahl index of a particular industry?

• A) a conglomerate merger
• B) a vertical merger
• C) a price-fixing arrangement among all the industry firms
• D) a horizontal merger

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Definitions:

Partnership Agreement

A legal document that outlines the rights, responsibilities, and obligations of each partner in a business partnership.

Partnership Property

Assets or property owned by a partnership, which are used in the operation of the business and subject to the rights and interests of the partners.

Partner's Interest

A reference to an individual's ownership stake or share in a partnership, reflecting their rights to profits and obligations for losses.

Assignability

The capability of a contractual right or duty to be transferred from one party to another.