All of the following are true of antitrust lawsuits except for
A. The FTC files lawsuits in most cases they review.
B. The FTC reviews complaints that have been recommended by its staff and approved by the FTC
C. FTC guidelines commit the FTC to make a final decision within 13 months of a complaint
D. As an alternative to litigation, a company may seek to negotiate a voluntary settlement of its differences with the FTC.
E. FTC decisions can be appealed in the federal circuit courts.
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All of the following are true of the Hart-Scott-Rodino Antitrust Improvements Act except for
Acquisitions involving firms of a certain size cannot be completed until certain information is supplied to the FTC
B. Only the acquiring firm is required to file with the FTC
C. An acquiring firm may agree to divest certain businesses following the completion of a transaction in order to get regulatory approval.
D. The Act is intended to give regulators time to determine whether the proposed combination is anti-competitive.
E. The FTC may file a lawsuit to block a proposed transaction
Which of the following are true about the Sherman Antitrust Act?
A. Prohibits business combinations that result in monopolies.
B. Prohibits business combinations resulting in a significant increase in the pricing power of a single firm.
C. Makes illegal all contracts unreasonably restraining trade.
D. A and C only
E. A, B, and C
In a tender offer, which of the following is true?
A. Both acquiring and target firms are required to disclose their intentions to the SEC
B. The target’s management cannot advise its shareholders how to respond to a tender offer until has disclosed certain information to the SEC
C. Information must be disclosed only to the SEC and not to the exchanges on which the target’s shares are traded
D. A and B
E. A, B, and C
Which of the following represent important shortcomings of using industry concentration ratios to determine whether the combination of certain firms will result in an increase in market power?
A. Frequent inability to define what constitutes an industry
B. Failure to measure ease of entry or exit for other firms
C. Failure to account for foreign competition
D. Failure to account properly for the distribution of firms of different sizes
E. All of the above