Growth Industries

question 22

Multiple Choice

Growth industries

• A) typically suffer from high mobility barriers.
• B) provide economies of scale to existing companies
• C) have high rivalry among established companies.
• D) increase prices because customers are more aware of the industry's product.
• E) tend to be characterized by weak rivalry.

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Definitions:

Stock Repurchase

A program by which a company buys back its own shares from the marketplace, usually to increase the value of remaining shares.

Excess Cash

Excess cash refers to the amount of cash holdings that exceed what a company needs for its operational requirements, often invested or returned to shareholders.

Repurchase Prices

The cost at which a company can buy back shares or securities from the market or shareholders.

Market Prices

The current the current price at which an asset or service can be bought or sold in a particular market.