25. Suppose that Horace and Raul merge. What would be the new Herfindahl-Hirschmann index
for the industry?
A. 2,818
B. 10,000
C. 6,018
D. 1,618
E. None of the above
26. Suppose that instead of merging with Raul, Horace merges with Cannonade. What would be
the new Hirfindahl-Hirschmann index for the industry?
A. 2,578
B. 10,000
C. 2,867
D. 3,379
E. None of the above
27. The primary difference between Chapter 7 and Chapter 11 bankruptcy for a corporation is
A. Chapter 11 is for complete liquidation
B. Chapter 7 is for reorganization
C. Chapter 7 is only for individuals
D. Chapter 11 is only for individuals
E. None of the above
28. What is the purpose of ‘critical vendor payments’ when a company is in bankruptcy?
A. To pay the vendors that most need the money first
B. To pay the IRS the taxes due
C. To pay key suppliers of the bankrupt company first
D. Both A and B
E. None of the above