For Firms Like Target and Wal-Mart, Competition

question 225

Multiple Choice

For firms like Target and Wal-Mart, competition

• A) is not a factor that must be considered in a free-market economy.
• B) affects smaller businesses but not large chain operations.
• C) affects larger chain operations but not smaller businesses.
• D) is a rivalry among businesses for sales to potential customers.
• E) is a problem that has been eliminated in the twenty-first century.

---

Definitions:

Ask Price

The lowest price a seller is willing to accept for an asset on the market.

Accrued Interest

The interest that has accumulated on a bond or loan since the last interest payment was made.

Conversion Premium

The additional amount that an investor pays over the current market price to convert a convertible security into a predetermined number of common shares.

Conversion Ratio

The specified number of shares that can be converted from a convertible security.