Dynotrix Motors Is a Large Car-Manufacturing Company

question 30

Multiple Choice

Dynotrix Motors is a large car-manufacturing company. The company purchases raw materials from many small-sized sellers across the globe. In this case, Dynotrix Motors is characterized by ________.

• A) very low threat of substitute products
• B) high bargaining power over its suppliers
• C) very low threat of new entrants in the market
• D) very high bargaining power over its customers

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Definitions:

Declaration Date

The date on which a company's board of directors announces its next dividend payment, including the amount to be paid and the record and payment dates.

Ex-dividend Date

The specific date on which a stock is traded without its dividend rights, meaning any subsequent buyer will not receive the next dividend payment.

Stock Transfer Books

Records maintained by a company documenting the ownership and transfer of its stock, used to ensure legal ownership and voting rights.

Stock Dividend

Essentially a stock split in which the number of new shares issued is less formal and usually smaller.