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Aleonysh [2.5K]
3 years ago
14

In 1999, the Federal Trade Commission allowed Exxon and Mobil to merge. At the time, Exxon and Mobil were the top two firms in t

heir industry, and their merger created the largest corporation in the world. To allow the merger, Exxon and Mobil agreed to sell 2,431 gas stations. Of these, 1,740 were in the mid-Atlantic states, 360 were in California, 319 were in Texas, and 12 were in Guam.
Why would the U.S. government require Exxon and Mobil to divest themselves of so many gas stations in localized parts of the country to be willing to allow the merger to occur?

a. Because these geographic regions had too many gas stations.
b. To protect consumers from inappropriate price decreases.
c. To ensure competition in these regions and protect consumers from unwarranted price increases.
d. To ensure that Exxon-Mobil would earn fair profits in these geographic areas.
Business
1 answer:
Dahasolnce [82]3 years ago
7 0

Answer:

1999 Merger of Exxon and Mobil

The reason that made the U.S. government to require Exxon and Mobil to divest themselves of so many gas stations in localized parts of the country to be willing to allow the merger to occur is:

c. To ensure competition in these regions and protect consumers from unwarranted price increases.

Explanation:

The agreement to sell so many gas stations in localized parts of the country was to forestall antitrust lawsuits.  It was also made to protect consumers from unwarranted price increases, allowing more competition in the affected areas, where ExxonMobil owed too many gas stations.

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2 years ago
Inflation is undesirable because it: Multiple Choice always makes the nation poorer. redistributes income from those who can rai
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<h3>What is inflation?</h3>
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"During the project life cycle, project managers encounter many occasions to employ their negotiating skills in interactions wit
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Answer:

A. True

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Manager need to employ their negotiating skill in different areas.

And the subject of negotiation written are all correct

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3 years ago
Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During 2013, sh
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Answer:

$26,898.25

Explanation:

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3 years ago
The independent cases are listed below includes all balance sheet accounts related to operating activities: Net income Depreciat
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Answer: Please see below

Explanation: The values from  the question are scattered, but here is how they should appear

                                                    Case A       Case B         Case C  

Net income                               $310,000         15,000 $420,000    

Depreciation expense                  40,000   150,000       80,000

Accounts receivable increase

(decrease                                      100,000 (200,000) (20,000)

Inventory increase (decrease)        (50,000)   35,000   50,000

Accounts payable increase           (50,000)   120,000   70,000

Accrued liabilities increase

(decrease)                                  60,000  (220,000) (40,000)

To calculate the operating activities section of cash flows for each of the given cases,

we use the Indirect method formula

Net cash flow from operating actvities  = Net Income + Non-Cash Expenses – Increase in Working Capital

Net cash flow from operating actvities =Net Income +/- Changes in Assets & Liabilities + Non-Cash Expenses

Net cash flow from operating actvities = Net Income + Depreciation + Stock Based Compensation + Deferred Tax + Other Non Cash Items – Increase in Accounts Receivable – Increase in Inventory + Increase in Accounts Payable + Increase in Accrued Expenses + Increase in Deferred Revenue

Following the formulae above, we can determine what expense should be added or subtracted to give the operating activities of cash flow below as

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Net Income               $310,000                15,000         $420,000  

Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities

Depreciation                   40,000              150,000       80,000

Changes in Assets and Liabilities

Accounts Receivable        - 100,000       200,000           20,000

Inventory                              50,000           -35,000        - 50,000    

Accounts Payable            -50,000            120,000       70,000

Accrued Liabilities              60,000           - 220,000       -40,000

Net Cash Provided by Operating Activities

                                      $310,000         $230,000       $500,000

6 0
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