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jessicamuniz
- Junior | Next Rank: 30 Posts
- Posts: 26
- Joined: Thu Jul 17, 2008 1:02 pm
Here is another one....
Thanks
If the unfriendly takeover of Downey Industry by Farkow International is allowed, industry analysts generally agree that Farkow will be saddled with so much debt that it ill be forced to triple the price of ball bearing, Downey’s primarily product.
Downey maintains the top market position in the manufacture of ball bearings, accounting for nearly two-thirds of all ball bearings produced. The takeover could lead to a crisis for industries that depend on ball bearings, and thus contribute to weakening of the economy.
Which of the followings, if true, most seriously weakens the conclusion above?
A. Farkow International may face financial ruin if the acquisition of Downey is blocked.
B. Downey Industries has legislative recourse to delay the takeover, which could alter the amount of debt incurred by Farkow International.
C. With the infusion of a relatively minor capital investment, it may be possible for Farkow International to being producing its own ball bearings, altering Downey´s market share significantly.
D. The profit margin for ball bearings is considerably less than that for Downey’s other product.
E. In the event of a takeover of Downey Industries, smaller companies that produce ball bearings will expand to satisfy the market for cheaper ball bearings.
Thanks
If the unfriendly takeover of Downey Industry by Farkow International is allowed, industry analysts generally agree that Farkow will be saddled with so much debt that it ill be forced to triple the price of ball bearing, Downey’s primarily product.
Downey maintains the top market position in the manufacture of ball bearings, accounting for nearly two-thirds of all ball bearings produced. The takeover could lead to a crisis for industries that depend on ball bearings, and thus contribute to weakening of the economy.
Which of the followings, if true, most seriously weakens the conclusion above?
A. Farkow International may face financial ruin if the acquisition of Downey is blocked.
B. Downey Industries has legislative recourse to delay the takeover, which could alter the amount of debt incurred by Farkow International.
C. With the infusion of a relatively minor capital investment, it may be possible for Farkow International to being producing its own ball bearings, altering Downey´s market share significantly.
D. The profit margin for ball bearings is considerably less than that for Downey’s other product.
E. In the event of a takeover of Downey Industries, smaller companies that produce ball bearings will expand to satisfy the market for cheaper ball bearings.
