Question

what is the primary legal constraint on business combinations? why does such a constraint

what is the primary legal constraint on business combinations? why does such a constraint

0 0
Add a comment Improve this question Transcribed image text
Answer #1

A business combination refers to an event or transaction where an acquirer obtains control of a business. The potential antitrust suits are the primary legal constraint on business combinations. In U.S., antitrust law is a collection of state and federal government rules and policies that regulates the conduct and organization of corporations in business, often to promote competition. The U.S. government does not prefer the concentration of economic power that can result from business combinations and has enacted Federal antitrust laws for preventing the individual corporations from assuming a power in the market that makes them able to increase prices and limit their output without concern for any significant reaction from competitor. In U.S. to deal with antitrust problems there are two federal statutes, the Sherman Act and the Clayton Act.

Add a comment
Know the answer?
Add Answer to:
what is the primary legal constraint on business combinations? why does such a constraint
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT