A merger is the joining together of two companies that were previously separate. In order to expand business, reduce costs, or increase market power, firms often seek to merge with or acquire other firms. Generally mergers occur through either a stock or asset purchase of one firm by another.

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A Merger

Question 45

Multiple Choice

A merger:

A) is not covered by the United States antitrust laws and regulations.
B) occurs through either a stock or asset purchase of one firm by another.
C) doesn't come under the jurisdiction of the Department of Justice.
D) can only be of the conglomerate type to be anticompetitive.

Correct Answer: