Which of the Following Is Most Responsible for the Shrinking

question 85

Multiple Choice

Which of the following is most responsible for the shrinking number of competitors in almost every major industry?

• A)declining materialism and a return to more basic values
• B)acquisition of competitors
• C)patents that create barriers to entry
• D)unfair consumer protection laws
• E)predatory pricing

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Definitions:

Operating Income

Income generated from the normal business operations of a company, excluding expenses such as interest and taxes.

DuPont Formula

A formula that breaks down Return on Equity (ROE) into three components: profit margin, asset turnover, and financial leverage, to analyze a company's financial performance.

Profit Margin

Profit margin is a financial metric showing the percentage of revenue that remains as profit after all operating expenses are deducted from sales.

Investment Turnover

A ratio that measures the efficiency of a company’s use of its assets in generating sales or revenue; the ratio of net sales to average total assets.