High Levels of Competition May Be Caused By

question 52

Multiple Choice

High levels of competition may be caused by:

• A) Rapid industry growth
• B) Low fixed costs
• C) A small number of competitors
• D) A lack of product differentiation

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Definitions:

Current Ratio

A financial metric indicating a firm's capability to settle short-term debts, determined by dividing its current assets by its current liabilities.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Sales On Account

Transactions where goods or services are sold with payment to be received at a later date, often documented through invoices.

Cost Of Goods Sold

Direct expenditures linked to the making of products that a company offers for sale.