Question 1

The concept of the "relevant" market was important in which of the following cases?

Accepted Answer

A)  Standard Oil case of 1911
B)  DuPont case of 1956
C)  IBM case,which was terminated in 1982
D)  U.S.Steel case of 1920

Question 2

Statement I.The distinction between American and foreign companies is becoming blurred.
Statement II.Monopoly and antitrust enforcement will become even more important in the 21st century than it was in the 20th century.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 3

A merger between the Ford Motor Company and the Firestone Tire Company would be a ________ merger.

Accepted Answer

A)  horizontal
B)  vertical
C)  conglomerate
D)  diversifying

Question 4

A merger between Hertz Rent-a-Car and Budget Rent-a Car would be a ______ merger.

Accepted Answer

A)  horizontal
B)  vertical
C)  conglomerate
D)  diversifying

Question 5

The 60 percent rule states that _________________________.

Accepted Answer

if a firm has a share of at le...

Question 6

Each of the following has tended to foster competition except

Accepted Answer

A)  more foreign competition.
B)  the declining importance of manufacturing.
C)  the rise of new industries.
D)  the declining number of corporate takeovers and mergers.

Question 7

When separate firms engaged in various stages of a production process are united under one ownership,the resulting combination is known as

Accepted Answer

A)  a horizontal merger.
B)  a vertical merger.
C)  a conglomerate merger.
D)  a trust.

Question 8

Without _______,there would have been no legal means for the government to curb even those mergers that most blatantly stifled competition.

Accepted Answer

A)  vertical mergers
B)  multinationals
C)  antitrust
D)  None of the choices are correct.

Question 9

Which of the following laws stated that attempts to monopolize,conspiracies in restraint of trade,and conspiracies to monopolize were illegal?

Accepted Answer

A)  The Federal Trade Commission Act
B)  The Clayton Act
C)  The Sherman Antitrust Act
D)  All of the choices are correct.

Question 10

Which of the following is false?

Accepted Answer

A)  In general,the deregulation of the airlines and interstate trucking industries led to higher costs and higher prices.
B)  Since the early 1980s the size of companies acquired in mergers has been getting larger.
C)  The rule of reason is partially in force today as firms are subject to prosecution if they control 60% of the relevant market and have behaved badly toward their competitors.
D)  When two firms in the same industry form one larger company it is called a horizontal merger.

Question 11

Expressly forbidding a person who is a director of one corporation to sit on the board of another corporation in the same industry is a provision of the ___________ Act.

Accepted Answer

The answer of Expressly forbidding a person who is a...

Question 12

Which statement is true?

Accepted Answer

A)  The Federal Trade Commission Act is the most important antitrust law on the books.
B)  The most important antitrust legislation was passed in the last three decades.
C)  The Clayton Act outlawed interlocking directorates.
D)  None of these statements are true.

Question 13

Until the passage of the Airline Deregulation Act of 1978,the Civil Aeronautics Board controlled all of the following except

Accepted Answer

A)  fares.
B)  assigned routes.
C)  profits.
D)  entry into the industry.

Question 14

Which statement is true?

Accepted Answer

A)  After settling its case with the Justice Department,Microsoft will not face any further serious litigation for at least another decade.
B)  Most of the largest corporate mergers in U.S.history took place between 1985 and 1995.
C)  Deregulation has been a complete failure.
D)  The history of antitrust goes back to the late 19th century.

Question 15

The ___________ case marked the high-water mark of antitrust enforcement.

Accepted Answer

The answer of The ___________ case marked the high-water mark...

Question 16

The huge wave of conglomerate mergers took place during the decade of the __________.

Accepted Answer

The answer of The huge wave of conglomerate mergers took...

Question 17

The deregulation of a few major industries began in the

Accepted Answer

A)  late 1950s.
B)  late 1960s.
C)  late 1970s.
D)  late 1980s.

Question 18

A firm that does business in many different countries is called a _________________.

Accepted Answer

multinatio...

Question 19

Which statement is false?

Accepted Answer

A)  Under the Clayton Act it is illegal for a person to sit on the boards of two competing firms.
B)  Deregulation has taken place in the airline and long-distance trucking industries.
C)  Indirect corporate interlocking directorates are legal in the United States.
D)  None of these statements are false.

Question 20

The largest share of corporate mergers in recent years has been in the _______ industry.

Accepted Answer

A)  oil
B)  drug
C)  automobile
D)  communications

Exam 25: Corporate Mergers and Antitrust

The ___________ case marked the high-water mark of antitrust enforcement.

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

Which of the following laws stated that attempts to monopolize,conspiracies in restraint of trade,and conspiracies to monopolize were illegal?

Correct AnswerverifiedShow Answer

The largest share of corporate mergers in recent years has been in the _______ industry.

Correct AnswerverifiedShow Answer

The 60 percent rule states that _________________________.

Correct Answerverifiedif a firm has a share of at le...View AnswerShow Answer

Expressly forbidding a person who is a director of one corporation to sit on the board of another corporation in the same industry is a provision of the ___________ Act.

Correct AnswerverifiedShow Answer

The huge wave of conglomerate mergers took place during the decade of the __________.

Correct AnswerverifiedShow Answer

The deregulation of a few major industries began in the

Correct AnswerverifiedShow Answer

A firm that does business in many different countries is called a _________________.

Correct Answerverifiedmultinatio...View AnswerShow Answer

Statement I.The distinction between American and foreign companies is becoming blurred. Statement II.Monopoly and antitrust enforcement will become even more important in the 21st century than it was in the 20th century.

Correct AnswerverifiedShow Answer

A merger between Hertz Rent-a-Car and Budget Rent-a Car would be a ______ merger.

Correct AnswerverifiedShow Answer

A merger between the Ford Motor Company and the Firestone Tire Company would be a ________ merger.

Correct AnswerverifiedShow Answer

Until the passage of the Airline Deregulation Act of 1978,the Civil Aeronautics Board controlled all of the following except

Correct AnswerverifiedShow Answer

Which statement is false?

Correct AnswerverifiedShow Answer

Without _______,there would have been no legal means for the government to curb even those mergers that most blatantly stifled competition.

Correct AnswerverifiedShow Answer

Each of the following has tended to foster competition except

Correct AnswerverifiedShow Answer

Which of the following is false?

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

When separate firms engaged in various stages of a production process are united under one ownership,the resulting combination is known as

Correct AnswerverifiedShow Answer

The concept of the "relevant" market was important in which of the following cases?

Correct AnswerverifiedShow Answer

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if a firm has a share of at le...
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multinatio...
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