Which of the Following Is Not One of the Differences

question 16

Multiple Choice

Which of the following is not one of the differences between limit and market orders?

• A)Limit orders define the price at which the shares will be purchased while market orders are independent of the final price.
• B)Limit orders are usually made by major institutions while retail investors make market orders.
• C)The amount of shares that can be purchased with a limit order is pre-specified by the underwriter, while market orders can be for any number of shares.
• D)Limit orders are expressions of interest while market orders are for fixed amounts.

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Definitions:

Contribution Format Income Statement

An income statement format that separates variable costs from fixed costs, highlighting the contribution margin.

Unit Sales

The total number of individual items or units that a company sells during a certain period.

Contribution Margin Ratio

The contribution margin ratio is the ratio of the contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and provide profit.

Fixed Monthly Expenses

Costs that do not vary from month to month, such as rent, loan payments, and insurance premiums.