Assume that Apple industry wants to merge with another software company such as Microsft and has to make some long term capital budgeting decisions. Now the industry is confronted with goverment regulations to oversee the merger.
1. Explain why US goverment regulation is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.
2. Justify the rationale for the intervention of government in the market process in the United States
3. Assume that the companies are considering this merger. The possible merger currently faces some threats and that Apple decides on self-expansion as an alternative strategy. Describe the additional complexities that would arise under this new scenario of expansion via capital projects.
4. Analyze hw the different forces will come together to create the convergence between interests of stockholders and managers indicating the most likely impact to profitability. Provide support for your response.