An Industry Is Comprised of 25 Firms, Each with an Equal

question 11

Multiple Choice

An industry is comprised of 25 firms, each with an equal market share.What is the 4-firm concentration ratio of this industry?

• A)0.12.
• B)0.16.
• C)0.20.
• D)0.25.

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Definitions:

Quick Assets

Assets that can be quickly converted into cash within 90 days or less, such as cash, marketable securities, and accounts receivable.

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks and bonds, typically held for short-term investment purposes.

Long-term Investments

Long-term investments are assets that a company intends to hold for more than one year, such as stocks, bonds, or real estate.

Current Ratio

This ratio assesses an entity's potential to cover its short-term dues using resources that are expected to be liquidated within a year.