Asked by Sheryl Kambuni on May 06, 2024
Verified
Mini Corp.and Huge,Inc.are competitors.Mini holds the single largest market share in the markets they compete in.Huge is third in terms of market share.Mini plans to acquire Huge.Which of the following,if true,would help bolster a conclusion that the acquisition is lawful under Section 7 of the Clayton Act?
A) That Mini has a history of acquiring ownership over competitors to increase its market share.
B) That there are about 25 competitors other than Mini and Huge while there were only 10 competitors 10 years ago.
C) That Mini has a 25 percent market share now and would only be increasing its market share by another 10 percent by acquiring Huge.
D) That Huge is an aggressive firm and it has developed a plethora of patentable technologies in the last five years.
Clayton Act
A U.S. antitrust law enacted in 1914, aimed at promoting competition by preventing mergers and acquisitions that could potentially reduce competition.
Market Share
The portion of a market controlled by a particular company, often expressed as a percentage of total sales in that market.
Patentable Technologies
Innovations or inventions that meet specific criteria for novelty, non-obviousness, and utility, thus eligible for patent protection.
- Acquire knowledge of the legal guidelines governing mergers and acquisitions.
- Comprehend the influence of market share and the extent of competition on merger evaluations.
Verified Answer
Learning Objectives
- Acquire knowledge of the legal guidelines governing mergers and acquisitions.
- Comprehend the influence of market share and the extent of competition on merger evaluations.
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