Adam Ripley Sells Custom Bicycles

question 9

Multiple Choice

Adam Ripley sells custom bicycles. Adam buys several bike parts including wheels and tires from the Good Treads Company. Although several government-supported regulations help Adam in his business, regulations that make it easy for Adam's business to enjoy good vendor relationships are:

• A)lower taxes that business to business customers pay to each other.
• B) laws that permit minimal corruption in banking institutions.
• C) laws that permit small businesses to use the government as an intermediary when doing business with other small businesses.
• D)laws that support enforceable contracts between firms.

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Definitions:

Linear Relationship

A direct relationship between two variables where a change in one variable is directly proportional to a change in the other.

Reduction

The act of making something smaller or less in amount, degree, or size.

Nondiversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, often associated with market-wide risks.