A Capital Gain Occurs When

question 3

Multiple Choice

A capital gain occurs when:

• A) the selling price is less than the purchase price.
• B) the purchase price is less than the selling price.
• C) there is no dividend paid.
• D) there is no income component of return.

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Definitions:

Per Se Illegal

A term used in antitrust law referring to certain business practices that are considered illegal by their very nature, without the need for further examination of their effects.

Exclusive Dealing

An agreement where a seller agrees to sell, and a buyer agrees to buy, products or services exclusively from each other.

Horizontal Restraint

A term used in antitrust law to describe practices that restrict competition among firms at the same level in the supply chain.

Tying Arrangement

A commercial strategy where a seller requires a buyer to purchase a secondary product as a condition of buying a desired primary product.