A Diverse Array of Organizations Make Up the Business Market

question 17

Multiple Choice

A diverse array of organizations make up the business market. These organizations can be broadly classified as:

• A)commercial enterprises, governmental organizations, and institutions.
• B)commercial enterprises, users, and governmental units.
• C)commercial enterprises, users, and original equipment manufacturers.
• D)producers and resellers of industrial products or services.
• E)upstream suppliers, users, and governmental units.

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Definitions:

Market Proxy

A singular asset or portfolio that represents the characteristics of an entire market segment or the market as a whole.

CAPM

The Capital Asset Pricing Model, which describes the relationship between systematic risk and expected return for assets, particularly stocks, suggesting that investors need to be compensated in two ways: time value of money and risk.

Fama and French

Scholars who developed a three-factor model for explaining the risk and return of stocks and other investments.

Econometrics

The application of statistical and mathematical theories to economics for the purpose of testing hypotheses and forecasting future trends.