Which of the Following Statements About Government Regulations in the Context

question 42

Multiple Choice

Which of the following statements about government regulations in the context of entry barriers of an industry is true?

• A) Government deregulation in an industry results in significant reduction in competition.
• B) Government regulation is not a major entry barrier for any industries.
• C) Falling entry barriers due to government deregulation results in higher competition and lower industry profit rates.
• D) The threat of new entrants is reduced when the government deregulates an industry.
• E) Companies that enjoy brand loyalty and have significant scale economies are the ones who face major threat of competition due to government deregulation.

Understand how corporate policies are formulated and the board’s role in such decisions.

Comprehend the legal consequences of directorial and officer breaches of duty, including derivative suits.

Recognize the statutory and regulatory framework governing corporate governance, including the Sarbanes-Oxley Act.

Appreciate the cultural aspects of corporate management accountability.