Antitrust Laws in Business: Lesson Plans Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. The Clayton Antitrust Act gives the government the right to _____.

Question 2 2. What tactic is employed by a target company if it attempts to dilute the value of the shares held by the acquiring company?

Question 3 3. Highway Motel and Motel Vagabond are the only two hotels on Route 1A. A snow storm is predicted for Saturday night. Knowing that the highway may be impassable, the two innkeepers decide to raise their prices from $39.00 a night to $149.00 a night. Why is this an example of price fixing?

Question 4 4. Technoprinters developed a new printer that everyone wants. The printer can only use the ink cartridges that they manufacture. As a result, people must buy complementary products from them. Why is this illegal?

Question 5 5. Sam, Mike, and Maurice all own drywall companies. They want to be able to win every bid. They decide that one of them will submit a low bid, while the other two submit higher prices. They take turns doing this, so each of them will get the job at some point in time. What is this called?

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Question 6 6. Which of the following statements about the Federal Trade Commission is NOT true?

Question 7 7. The act that regulates fair competition by enlisting the help of the Federal Trade Commission is the:

Question 8 8. What's the name of the tactic a target company uses when it offers lucrative severance packages to regular employees?

Question 9 9. What type of merger occurs when two companies from the same industry decide to combine?

Question 10 10. A horizontal agreement is between:

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Question 11 11. Flip's Burgers only sells Yum-A-Roo brand sodas. This is considered:

Question 12 12. The Federal Trade Commission (FTC) recommended against a merger between Office Depot and Staples because it would result in higher consumer prices. This is an example of what type of FTC power?

Question 13 13. A former employee sued his company for patent infringement. He claimed that they were trying to establish a monopoly and that they cost him his life's savings. The jury ruled in his favor and decided the company needed to pay him $20 million. The court chose to use a provision of the Clayton Act called treble damages, meaning that the company had to pay _____.

Question 14 14. How can a hostile takeover potentially be illegal?

Question 15 15. Which of the following BEST describes a merger?

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Question 16 16. When purchasing a product from an online source the consumer provides personal information for the purposes of shipping and payment. The Federal Trade Commission requires this information be _____.

Question 17 17. What type of merger would occur if a company that sold tickets and a company that promoted concerts combined?

Question 18 18. A vertical agreement is between:

Question 19 19. Which of the following BEST defines an acquisition?

Question 20 20. Which provision supported by the Federal Trade Commission allows a consumer to opt in or opt out of providing personal details?

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Question 21 21. Which tactic would a target company use to stall an acquisition in hopes that a better company comes along to buy it?

Question 22 22. One of the most important purposes of the Sherman Antitrust Act is to:

Question 23 23. Why could a possible merger between Microsoft and Google be considered a monopoly?

Question 24 24. Sampson Industries manufacture a car powered by cooking oil. You only need corn oil to run the car. However, when a customer purchases a car, they are forced to agree to purchase oil from Sampson and no other seller. This an example of a _____.

Question 25 25. Which of the following tactics would a target company use when it acts to make itself unattractive, such as by spending all of its cash reserves or going into heavy debt?

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Question 26 26. Which of the following represents an example of a concentric merger?

Question 27 27. Which of the following is NOT a provision supported by the Federal Trade Commission?

Question 28 28. A company using the Pac-Man defense to combat a takeover will MOST likely do which of the following?

Antitrust Laws in Business: Lesson Plans Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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