Capacity Utilization Is Defined as the Ratio of

question 78

Multiple Choice

Capacity utilization is defined as the ratio of

• A)actual output to actual capacity.
• B)actual output to design capacity.
• C)design capacity to actual capacity.
• D)actual capacity to actual output.

Distinguish between the concepts of authorized, issued, and outstanding shares.

Comprehend the reasons for acquiring treasury stock and the effects of such transactions.

Understand the treatment and reporting of stock issued above par value.

Recognize the importance of asset revaluations, fair value adjustments, and their exclusions under IFRS in equity.

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Definitions:

Cartels

Groups of independent market participants who collude to control prices and output in a market, often to maximize joint profits.

Antitrust Laws

Regulations that promote competition by prohibiting monopolies, monopolistic practices, and other unfair business tactics that reduce consumer choice.

Price Leadership

A market strategy where a leading firm sets prices that other firms in the market follow.

Price Cuts

A reduction in the selling price of goods or services, usually to stimulate demand or compete more effectively.