24. What is the current Hirfindahl-Hirschmann Index for the Sprockett industry?

A. 0.2068

B. 2,068

C. 10,000

D. 1,764

E. None of the above

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

Use the following table of market share for the companies in the Sprockett industry for the next three questions: Firm Horace Raul Daphne Roquefort Cannonade Market Share 15% 25% 20% 23% 17%