Chapter 26 - Corporate Mergers and Antitrust

1		Statement I. The antitrust movement began with the New Deal. Statement II. John D. Rockefeller was an early target of antitrust.
			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.
2		In 1911 the
			A)	American Tobacco Trust was broken up.
			B)	Standard Oil Trust was broken up.
			C)	both the American Tobacco Trust and the Standard Oil Trust were broken up.
			D)	neither the American Tobacco Trust nor the Standard Oil Trust were broken up.
3		Statement I. The Justice Department prevented the merger of the two largest oil companies in 1999. Statement II. The Federal Trade Commission is an important enforcer of antitrust.
			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.
4		Which is the most accurate statement?
			A)	The Microsoft case was settled in 2000.
			B)	Microsoft's Windows is the dominant computer operating system.
			C)	Microsoft has admitted in court to engaging in predatory behavior toward its competitors.
			D)	Microsoft has only a small share of sales of computer operating systems software.
5		Walt Disney's acquisition of the ABC TV network was a ________ merger.
			A)	horizontal
			B)	vertical
			C)	conglomerate
6		Deregulation of trucking is widely considered to be
			A)	a tremendous failure.
			B)	a mixed bag of success and failure.
			C)	a very limited success.
			D)	a big success.
7		Statement I. The 1996 Telecommunications Act requires the Baby Bells to open up their local calling markets to competition before being able to get into the long-distance calling business. Statement II. With the advent of wireless systems, internet calling, and phone service over cable, the distinction between long distance and local calls is becoming less and less relevant.
			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.
8		There has been a trend toward larger and larger mergers
			A)	in the U.S.
			B)	worldwide.
			C)	both in the U.S. and in the rest of the world.
			D)	neither in the U.S. nor in the rest of the world.
9		There have been very large mergers in recent years in the U.S. in each of these fields except
			A)	communications.
			B)	financial services.
			C)	oil.
			D)	construction.
10		The most important antitrust legislation was passed in
			A)	1890.
			B)	1911.
			C)	1920.
			D)	1933
11		Statement I. With the trend toward globalization, antitrust is becoming less relevant. Statement II. Barnes and Nobles was thwarted by antitrust regulators from purchasing Ingram, a book wholesaler.
			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.
12		Compared to 40 years ago, we can say that there is ____________ corporate concentration.
			A)	somewhat less
			B)	about the same level of
			C)	somewhat more
			D)	substantially more
13		Over half of the largest corporate mergers in history took place
			A)	after 1995.
			B)	between 1990 and 1995.
			C)	between 1980 and 1990.
			D)	before 1980.
14		The ______ Act forbid interlocking stockholding and interlocking directorates.
			A)	Sherman
			B)	Clayton
			C)	Federal Trade Commission
			D)	Telecommunications Act