After Having a Monopoly in the Diamond Market for Many

question 111

Multiple Choice

After having a monopoly in the diamond market for many years, by 2000 the De Beers company faced competition from other companies.To maintain its market share, De Beers

• A)began buying so-called "blood diamonds" in order to keep these diamonds out of the control of other diamond companies.
• B)adopted a strategy of differentiating its diamonds. Each of its diamonds is now marked with a microscopic brand.
• C)bought diamond mines in Canada and Russia that had been its competitors.
• D)lowered the prices of its diamonds to make the market appear less profitable to potential competitors.

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Definitions:

Adjusting Journal Entries

Entries made in the accounting records to correct any discrepancies or to make non-cash adjustments.

Wages Expense

The total cost incurred by an employer for paying the hourly earnings of its employees.

Wages Payable

The total amount of wages earned by employees that the company has not yet paid.

End-Of-Period Spreadsheet

An End-Of-Period Spreadsheet is a document used in accounting to compile balances from journals and ledgers, facilitating adjustments and preparing financial statements.