Solved

The Competition Tribunal Has Ordered That a Hearing Be Held

question 53

Essay

The Competition Tribunal has ordered that a hearing be held in response to the results of an inquiry made by the Commissioner into a proposed merger of the two largest companies in the food service industry.As the President of one of the companies involved in the merger you are concerned that the Tribunal may not permit you to enter crucial technical data as evidence that you need to show that the merger does not lessen competition to the detriment of the public.
A)Explain why you should or should not be concerned about this.
B)After the hearing is completed the Tribunal makes an order prohibiting the merger.You were able to present only part of your technical data as evidence,although the other company called upon an expert witness to interpret the data and present arguments about the nature of the food services industry.What is your response to the order? What is the probable outcome?

Definitions:

Financial Reporting

The process of communicating financial information about a company to external parties such as investors, regulators, and creditors.

Impairment

Refers to a decrease in the recoverable value of an asset to below its carrying amount on the balance sheet, necessitating an adjustment to reflect its reduced worth.

Intellectual Capital

The intangible value of a company's assets such as knowledge, brand, reputation, and employee expertise.

Internally Developed Intangible

Assets created internally by a company, such as software, patents, or trademarks, which do not qualify for capitalization unless they meet specific criteria.