Which of the Following Findings Would Be the Most Likely

question 35

Multiple Choice

Which of the following findings would be the most likely to lead the U.S.Justice Department to block a corporate merger under terms of the Clayton Act?

• A) A buyer-seller relationship between the two firms.
• B) A high premerger Herfindahl index in the industry and a large boost in the index because of the merger.
• C) A low pre- and post-merger concentration ratio in the industry.
• D) Evidence that one of the firms is highly unprofitable.

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Definitions:

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, copyrights, and goodwill.

Natural Resources

Assets that occur in nature, such as minerals, timber, and water, which can be used to produce goods and services.

Research and Development

Activities undertaken by a company to innovate and introduce new products or services, often involving experimental or theoretical work.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.