Since the 1980s, Wal-Mart Stores Have Appeared in Almost Every

question 127

Multiple Choice

Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates that:

• A) consumers are boycotting local retailers.
• B) Wal-Mart engages in illegal acts of monopolization.
• C) there are diseconomies of scale in retail sales.
• D) there are economies of scale in retail sales.
• E) Wal-Mart is managed by ruthless business people.

---

Definitions:

Majority Shareholder

A Majority Shareholder is an individual or entity that owns more than 50% of a company's shares, thereby having significant influence or control over company decisions.

Common And Preferred

Types of stock in a corporation; common stock typically grants voting rights, whereas preferred stock offers dividends priority.

Shareholders

Individuals or entities that own shares in a corporation and have potential voting rights and dividends.

Surviving Corporation

The entity that continues to exist after the merger or consolidation of two or more corporations, absorbing the assets and liabilities of the other entities.