How Does the Global Economy Change the Competitive Environment

question 39

Multiple Choice

How does the global economy change the competitive environment?

• A) Suppliers are not required to reach a wide range of customers.
• B) Customers now have less access to information about substitutes.
• C) It has intensified rivalry by increasing product and vendor choices.
• D) It has made it easier for new market entrants in all fields to penetrate the market.

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Definitions:

Cumulative

Refers to an overall amount that includes all accumulated adjustments, additions, charges, and other relevant items over a period.

Preferred Stock

Type of stock that provides dividends before common stock and carries no voting rights, offering a higher claim on assets and earnings.

Par Value

The nominal or face value of a bond, stock, or coupon as stated in the financial instrument, which is a significant figure for calculating interest payments or dividends.

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, often used in the context of bonds.