Pure Monopoly

question 126

Multiple Choice

Pure monopoly

• A)is defined as having only one supplier.
• B)has no close substitutes for its product.
• C)exists when entry and survival of potential competitors is extremely unlikely.
• D)All of the above are correct.

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Definitions:

Noncumulative Preferred Stock

Preferred shares that do not entitle the holder to claim dividends missed in the past if the company decides not to distribute dividends in a given year.

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces the price per share, making the stock more accessible to investors.

Basic Earnings Per Share

A measure of a company's profitability that shows how much of its profits are allocated to each share of common stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains unchanged.