Sometimes,business Owners Sell the Majority Interest in Their Companies to Investors,competitors,suppliers,or

question 93

Multiple Choice

Sometimes,business owners sell the majority interest in their companies to investors,competitors,suppliers,or large companies with an agreement that they will stay on after the sale.This is called:

• A)sale of controlling interest.
• B)restructuring the company.
• C)using a two-step sale.
• D)None of the above

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Definitions:

Antitrust Laws

Legislation intended to promote competition and prevent monopolies and unfair business practices.

Competitive Economy

An economic system where many firms compete to sell their goods and services, with minimal barriers to entry and exit.

Elasticity Of Demand

An indicator of the sensitivity of demand for a product to fluctuations in its price.

Marginal Cost

The additional total expense that results from the creation of one more unit of a product or service.