Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 25: Problem 26

Which statement is true? (LO7) a) Most of the largest corporate mergers in our history took place during the period 1998-2000. b) There have been virtually no large mergers in banking or communications. c) Nearly all large corporations are conglomerates. d) Enron continues to be one of our largest corporations.

Short Answer

Expert verified
(a) Most of the largest corporate mergers in our history took place during the period 1998-2000.

Step by step solution

01

Analyze Statement A

Most of the largest corporate mergers in our history took place during the period 1998-2000. According to historical data, there was indeed a significant wave of mergers and acquisitions during this period, driven by factors such as globalization, deregulation, and advancements in technology. Some of the largest mergers in history happened during these years, such as the merger between Exxon and Mobil, AOL and Time Warner, and Vodafone and Mannesmann. Therefore, Statement A is a strong candidate for the true statement.
02

Analyze Statement B

There have been virtually no large mergers in banking or communications. This statement is not true. Mergers and acquisitions have been quite common in both the banking and communications sectors throughout history. In fact, some significant mergers took place in these industries during the time period mentioned in Statement A, such as Citicorp and Travelers Group (banking) and Vodafone and Mannesmann (communications).
03

Analyze Statement C

Nearly all large corporations are conglomerates. A conglomerate is a corporation made up of several different, independent businesses. While it is true that some large corporations are conglomerates, it is not accurate to say that nearly all large corporations fall under this category. Therefore, this statement is not true.
04

Analyze Statement D

Enron continues to be one of our largest corporations. This statement is not true. Enron was a large energy corporation that filed for bankruptcy in 2001 after a significant accounting scandal. Enron no longer exists as a corporation, so it cannot be considered one of our "largest corporations."
05

Determine the True Statement

After analyzing each statement, we can conclude that: - Statement A is a strong candidate for the true statement. - Statements B, C, and D are not true. Therefore, the correct answer is: (a) Most of the largest corporate mergers in our history took place during the period 1998-2000.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Which would be the most accurate statement about the recent wave of corporate corruption? (LO6) a) It has hurt employees, stockholders, and, in general, the entire economy. b) It has actually been very healthy for our economy. c) It has very little bearing on employees, stockholders, or the economy. d) None of these statements is accurate.

The most important job of the Federal Trade Commission today is to __________.(LO3) a) prevent false and deceptive advertising b) break up unlawful trusts c) issue cease-and-desist orders when anticompetitive business practices occur d) promote commerce with foreign nations

Which statement is true? (LO3) a) Microsoft is subject to American antitrust laws, but not those of Europe, Asia, or elsewhere. b) Microsoft has never been involved in an antitrust suit. c) The European Commission fined Microsoft over \(\$ 2\) billion for its anticompetitive behavior. d) Microsoft has always gone out of its way to be helpful to its competitors.

Which would be the most accurate statement? (LO6) a) The honesty of our corporate leaders is beyond question. b) Most corporate leaders are dishonest. c) Even if a corporation "cooks" its books, the CPA firm it hires to audit its books will quickly find out and blow the whistle. d) Enron was not the only American corporation in recent years to be guilty of corporate misconduct.

Which of the following industries in the U.S. reported the largest mergers between 1998 and 2000 ? (LO7) a) Steel manufacturing b) Automobile production c) Communications d) Trucking
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free