Moody's, Value Line, and Dun and Bradstreet Are Examples of Companies

question 58

Multiple Choice

Moody's, Value Line, and Dun and Bradstreet are examples of companies that:

• A) provide information free to investors but charge the companies for the ratings provided on the company.
• B) provide information free to investors but recoup expenses through advertising done by the companies being rated.
• C) charge investors who subscribe to the services for the information.
• D) duplicate information that is available to investors at no cost.

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Definitions:

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point.

Actual

Pertaining to the real, recorded, or true values or outcomes, as opposed to estimated, planned, or theoretical figures.

Expected

Referring to what is considered likely or anticipated in terms of events, values, or outcomes.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit of a product.