Mergers and Acquisitions Are Often Driven by Such Strategic Objectives

question 15

Multiple Choice

Mergers and acquisitions are often driven by such strategic objectives as to

• A)expand a company's geographic coverage,extend its business into new product categories,or gain quick access to new technologies or other resources and capabilities.
• B)weaken the bargaining power of either key suppliers or key customers.
• C)reduce the company's vulnerability to industry driving forces.
• D)facilitate a company's shift from one type of competitive strategy to another.
• E)secure a higher credit rating and better access to additional financial capital.

Distinguish the problems faced by oligopolies with different numbers of members.

Analyze the incentives and profits under cartel arrangements.

Comprehend the role and outcomes of collusion in oligopoly markets compared to monopoly.

Understand the application of game theory to oligopoly markets.

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Definitions:

Agency Behavior

Actions and decisions made by agents representing others in business transactions, reflecting the interest of the principal.

Informal Rulemaking

A regulatory process that involves the publication of a proposed rule and the consideration of public feedback before finalizing the rule.

Federal Register

The official journal of the federal government of the United States that contains government agency rules, proposed rules, and public notices.

Constitutional Tests

Judicial standards and criteria used to evaluate laws and government actions to ensure they conform with the Constitution.