A General Rule for Managers to Follow Is to Set

question 20

Multiple Choice

A general rule for managers to follow is to set the firm's capital structure such that the firm's:

• A)size is maximized.
• B)value is maximized.
• C)bondholders are secured.
• D)suppliers of raw materials are satisfied.
• E)dividend payout is maximized.

---

Definitions:

Monopoly

A market structure in which a single seller controls all production and sale of a particular product or service.

Sherman Act

A landmark federal statute in the field of United States antitrust law prohibiting monopolistic behaviors.

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at preventing anticompetitive practices in their incipiency, including price discrimination, exclusive dealing agreements, and mergers and acquisitions that substantially lessen competition.

Per Se Violation

An action that by its very existence carries with it liability, as opposed to an action that violates a rule of reason.