Use the Information Below to Answer the Following Questions

question 61

Multiple Choice

Use the information below to answer the following questions.
Fact 13.3.1 What the Apple-Samsung Verdict Means for Your Smartphone
A California jury found Samsung guilty of violating the majority of the patents in question, including software features like double-tap zooming and scrolling. It recommended that Apple be awarded more than $1 billion in damages. This verdict could significantly affect both smartphone users and producers.
Source: CNN Money, August 26, 2012
-Refer to Fact 13.3.1. Suppose Apple becomes a monopoly in the smartphone market. Choose the statement that is incorrect.

• A)Samsung loses.
• B)The government gains.
• C)Consumers lose.
• D)Apple gains.
• E)The market for smartphones becomes less efficient.

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Definitions:

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which can make the stock more affordable to investors.

Market Value

The estimated amount for which an asset or company could be sold on the open market.

Optimal Distribution Policy

The distribution policy that maximizes the value of the firm by choosing the optimal level and form of distributions (dividends and stock repurchases).

Capital Gains

Capital gains are the profits realized from the sale of assets such as stocks, bonds, or real estate, which exceed the purchase price of these assets.