The spread between the interest rates on bonds with default risk and default-free bonds is called the

The primary purpose of a conglomerate merger is

a. to achieve economies of scale available through increased production of a single good. b. to allow for decentralized management by spreading authority of a number of people spread throughout company locations. c. to avoid adverse effects of business cycles through diversification. d. to reduce competition by purchasing and then closing competing firms.

A pottery craftsman is debating attending the crafters fair. It costs $50 to set up the booth and $20 in transportation to get his pottery to the fair. He nets $5 for each of his pieces, number of pots he must sell to make going to the fair worth the cost?

a. 10 b. 12 c. 14 d. 16