Certain federal guidelines significantly constrain and often prohibit mergers that could result from a purchase of assets.

Question

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This statement is true. Certain federal guidelines, such as the Sherman Antitrust Act and the Clayton Antitrust Act, aim to prevent monopolies and promote competition. As such, they can significantly constrain and even prohibit mergers that may result in a concentration of market power.

Certain Federal Guidelines Significantly Constrain and Often Prohibit Mergers That