1. A business owner may understate revenue and overstate actuall expenses when:

A.The business is about to be sold

B.They are being audited by the IRS

C.They are trying to minimize tax liabilities

D.none of the above

2.There are only three firms in an industry. if these three firms agree to merge into one firm, what will be the HHI index for this industry?

3. ABC corporation is acquiring DEF Corp for 226.0 Million in an all stock deal. After the merger, the shareholders of ABC will hold 70% of the combined company, while the shareholders of DEF will hold 30% of the combined company. What is the current mark capitalization of ABC?