What is the princi beneff of Vertical ntrutom? O Economies of scale O Coordinati
ID: 2636635 • Letter: W
Question
What is the princi beneff of Vertical ntrutom? O Economies of scale O Coordination Question G Bave Answer focuses on the mitigation of conflicts of interest between ownership and control in corporations. O Stockholder derivative litigation The Securities and Exchange Commission O corporate governance O The US Justice Department Question 7 When the fact that a firm has insurance to cover a specific risk reduces the firm's incentive to avold or minimize that risk, the situation is called a O market imperfection. O moral hazard O liquidity risk O cash and carry strategy. 4 points save Answer Question 8 Why was the merger wave in the 1980's known as the "bust-up" wave? C Because most of the mergers undertaken in the period were not successful O Because poorly performing firms were acquired and then individual business units were sold off, in total, for more than the acquisition price firms O Because many of the mergers completed resulted inthe failure of the merged O Because poorly performing firms were acquired and merged into one large conglomerate 4 points Save Answer are evidenced by savings that result from increased production and decreased unit fixed Question 9 costs. O Monopolies Economies of scale O Economies of scope O Mergers 321476-Explanation / Answer
6. Corporate Governance
7. Moral Hazard
8. Because poorly performing companies was acquired and individual units are sold off, in total for the acquisition price
9. Economies of scale