The Constraint That Is Specifies the Degree of Minimum Participation

question 78

Multiple Choice

The constraint that is specifies the degree of minimum participation of one entity in the relationship with the other entity is called:

• A) cardinality constraint
• B) participation constraint
• C) economic constraint
• D) logical constraint

Recognize defensive tactics used by companies to avoid takeovers.

Understand the regulatory and legal environment surrounding mergers and acquisitions.

Grasp the concept of synergy and its importance in mergers and acquisitions.

Evaluate the effect of mergers and acquisitions on shareholder value.

---

Definitions:

Horizontal Mergers

The combination of two or more firms operating at the same level in an industry.

Clayton Act

A U.S. antitrust law passed in 1914, aimed at promoting fair competition and preventing unlawful monopolies by regulating certain business practices.

Department of Justice

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

Per Se Violations

Actions that are considered inherently illegal under antitrust laws, without needing to prove their harm on competition.