Assume Diana Buys Computers in a Competitive Market

question 4

Multiple Choice

Assume Diana buys computers in a competitive market.It follows that

• A)Diana has a limited number of sellers to turn to when she buys a computer.
• B)Diana will find herself negotiating with sellers whenever she buys a computer.
• C)if Diana buys a large number of computers,the price of computers will rise noticeably.
• D)None of the above is correct.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, expressed as a percentage, indicating how much profit a company generates from its total sales.

Quality of Income

A measure of how easily accounting income can be converted to cash, indicating the reliability of earnings.

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.