Type of merger decreases competition

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Reference no: EM131310878

1. The Celluloid Collar Corporation has $210,000 in tax loss carryforwards. The Bowstring Shirt Company, a firm in the 30% tax bracket, would be willing to pay (on a nondiscounted basis) the sum of ______________ for the carryforward alone.

A. $108,000

B. $52,000

C. $63,000

D. $1,200,000

2. Which of the following type of merger decreases competition?

A. Horizontal merger

B. Vertical merger

C. Cash purchase

D. Stock-for-stock exchange

Reference no: EM131310878

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