General Motors Operates Several Divisions in Supplying Cars, Trucks, Vans

question 134

Multiple Choice

General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others. Chevrolet, Cadillac, and GMC trucks are among the company’s product lines. Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota. Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines.
-The industry conditions illustrated in this scenario are best characterized as _____.

• A)perfect competition
• B)oligopoly
• C)monopolistic
• D)monopoly

---

Definitions:

Stock Repurchase

A program by which a company buys back its own shares from the marketplace, usually to increase the value of remaining shares.

Excess Cash

Excess cash refers to the amount of cash holdings that exceed what a company needs for its operational requirements, often invested or returned to shareholders.

Repurchase Prices

The cost at which a company can buy back shares or securities from the market or shareholders.

Market Prices

The current the current price at which an asset or service can be bought or sold in a particular market.