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Kamila [148]
3 years ago
8

The government challenged the acquisition by Procter & Gamble (P&G) of Clorox. Clorox was the leading manufacturer of li

quid bleach at the time of the acquisition, Page 504accounting for 48% of the national sales. It was the only firm selling nationally, and the top two firms accounted for 65% of national sales. P&G is a large, diversified manufacturer of household products, with its primary activity being in the area of soaps, detergents, and cleaners. P&G accounted for 54% of all packaged detergent sales, and the top three firms accounted for 50% of the market. P&G is among the nation’s leading advertisers. What is the basis for the government’s challenge to this acquisition? Explain.
Business
2 answers:
STatiana [176]3 years ago
4 0

Answer:

The basis for the government’s challenge to this acquisition is the reliance on the horizontal merger. If the acquisition is approved, it would dissuade new entrants, discourage active competition from firms already in the industry due to fear of retaliation from Procter and decrease nationwide competition significantly in the liquid bleach field.

Explanation:

According to the case FTC v. Procter & Gamble Co., 386 U.S. 568 (1967), Federal Trade Commission (FTC) held the acquisition violative of § 7 of the Clayton Act.

Phoenix [80]3 years ago
3 0

Answer:

Answer: The basis for the government's challenge to P&G's acquisition of Clorox

Explanation:

The horizontal merger is the basis for the government's challenge to P&G's acquisition of Clorox because the result would have lessened competition substantially in that line of commerce nationwide. P&G being the leading and mainly national advertiser and also mainly national seller of soaps, detergents and cleaners with sales that accounted for 54 % of the market and a  leading brand with 48% of national sales.

With this type of advertising and power control which P&G possess, this would put P&G in a position to control the market and potentially detrimentally affect the consumers. These advantages they posses would reduce the number of competitors and lead to greater concentration in the industry they are.

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Diversification may dissipate value if it is wrongly based on: a. transferring competencies. b. realizing economies of scope. c.
Bezzdna [24]

Answer:

C. rescuing core business.

Explanation:

Diversification: It is a process of expanding the business by allocating investment in several other related businesses. This is a way to reduce risk on any particular asset or business and it also helps in covering the loss of one business. A company should pursue related diversification instead of unrelated diversification when the company's core skills are highly specialized and have few applications outside its core business.

7 0
3 years ago
Given the following information on a fixed-rate fully amortizing loan, determine the maximum amount that the lender will be will
tatiyna

Answer:

The maximum amount that the lender will be willing to provide to the borrower is $9,006.

Explanation:

Fixed payment for a specified period is know as the annuity. We will use the formula of present value of present value of annuity payment.

APV = C x [ ( 1 - ( 1 + i )^-n ) / i ]

C = Monthly payment = $800

Interest rate =i 8% = 0.08

n = number of years = 30 years

APV = $800 x [ ( 1 - ( 1 + 0.08 )^-30)/0.08 ]

APV = $800 x 11.2578

APV = $9,006

So, The maximum amount that the lender will be willing to provide to the borrower is $9,006.

5 0
3 years ago
The following events occurred for Favata Company:_________
Kipish [7]

Answer:

a.

Cash                                     16500 Dr

       Common Stock                  16500 Cr

b.

Cash                                    13500 Dr

    Notes Payable                     13500 Cr

c.

Equipment account                   1450 Dr

        Accounts Payable                 1450 Cr

d.

Land                            25000 Dr

     Cash                               2300 Cr

     Notes Payable               22700 Cr

e.

Equipment account                       9500 Dr

     Cash                                              2300 Cr

     Accounts Payable                        7200 Cr    

Explanation:

a.

The issuance of common stock against cash will increase the cash and the capital. So cash will be debited and capital (common stock) will be credited.

b.

The issuance of notes payable against cash increases liability and asset. The asset increase in cash will be debited and liability increase in notes payable will be credited.

c.

The purchase of equipment on account will increase liability and asset. The asset increase in form of equipment will be debited and the liability increase in form of accounts payable will be credited.

d.

The purchase of land will increase land and result in a debit to the land account. It is purchased for cash and a liability of notes payable. So both cash and the notes payable account will be credited as cash decreases (asset decrease in credited) and liability increases (liability increase is credited).

e.

The purchase of equipment will increase equipment account and result in  a debit to the equipment account. It is purchased for cash and a liability of accounts payable. So both cash and the accounts payable account will be credited as cash decreases (asset decrease in credited) and liability increases (liability increase is credited).

5 0
3 years ago
Question 9 you are doing some comparison shopping. five stores offer the product you want at basically the same price but with d
stiks02 [169]

Here we have not been given the answer choices. However, we can see that these choices are: 2/10 net 30, 2/5 net 30, 2/5 net 20, 1/10 net 45, 1/5 net 15

Here we are to select the best one if you want to forgo the discount. Since you want the discount to be forgone, we will select the plans that offer the least discount which are options 4 and 5 1/10 net 45 and 1/5 net 15.

Net out of these two, the 1/10 net 45 gives you discount of 1% for 10 days with total payable in 45 days and the other one gives you a 1% discount in 5 days. So we would like to select the one with most number of days without discount and this would be 1/10 net 45 and would give you a total of 45 days to pay the credit as against only 15 days in other option.

Hence the option which best suites is 1/10 net 45.


6 0
4 years ago
Which sentence does not control exuberance?
alekssr [168]

Answer:

The matter was handled really unfairly

Explanation:

Exuberance in a statement are usually identified by the use of the words - really and completely.

These words tend to give an expression of making excess effort in doing something. So exuberance is not controlled.

Overuse of intensifiers in a sentence shows exuberance and this is not ideal in business communication.

Various intensifiers include - very, definitely, really, actually, totally, extremely, and completely.

4 0
3 years ago
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