The Capture Theory of Regulation Contends That

question 156

Multiple Choice

The capture theory of regulation contends that

• A)the public "captures" the benefits of regulation through lower prices.
• B)natural monopolies "capture" high profits through the reduction of output.
• C)the regulatory agency is eventually "captured" by the special interests of the industry being regulated.
• D)large corporations "capture" high profits by regulating the tastes and preferences of the buying public.

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Definitions:

Original Cost

The initial cost of acquiring an asset or service, including all expenses related to the purchase.

Internal Control

Processes and procedures implemented by a company to safeguard its assets, enhance the reliability of its accounting records, promote efficient operations, and ensure compliance with laws and regulations.

Physical Count

A physical count involves manually counting the actual inventory to verify accuracy against inventory records, often used for audit purposes or to correct discrepancies.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.