Which of the Following Is True

question 49

Multiple Choice

Which of the following is true?

• A) Competitive forces are present even in markets with high barriers to entry.
• B) Quality competition is an unimportant element of the competitive process.
• C) Profitability and high prices discourage technological change and the development of substitute products.
• D) Government regulations have substantially increased the quality of American manufacturing products in recent years.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable amount within a given period.

Selling Inventory

Selling inventory consists of the process in which businesses sell their stocked goods or merchandise to customers.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue.

Net Sales

Net Sales is the amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.