In the Internet Age, Retailers Like Amazon and Apple Are

question 54

Multiple Choice

In the Internet Age, retailers like Amazon and Apple are not constrained by physical shelf space and can offer consumers a much wider variety of products; yet small sales, one or two rather than millions of items at a time, can produce big profits. This development is an example of

• A) the marketplace becoming more segmented and moving toward more niche products.
• B) declining population in developed countries.
• C) China becoming the second-largest economic power.
• D) the rise of business-to-business technology.
• E) instant-gratification shopping.

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Definitions:

Preferred Stock

A class of shares which typically provides a fixed dividend and has priority over common stock in the distribution of assets during liquidation.

Shares

Shares representing ownership rights in a corporation or financial asset, guaranteeing a fair share of profits through dividends, if declared.

Par Common Stock

This represents the nominal or face value assigned to common stock shares, which is the minimal amount shareholders must contribute and is not necessarily related to the market value.

Market Price

The current value at which an asset or service can be bought or sold in a transaction between willing parties.