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:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Provisions

Liabilities of uncertain timing or amount, set aside for future expenses or liabilities.

Timing

Refers to the selection of specific times for events to occur, which can influence the efficiency and effectiveness of operations, investments, and financial reporting.

Amount

A quantity of something, typically the total figured in numbers or unit of measure.