Which of the Following Statements About E-Distributors Is Not True

question 58

Multiple Choice

Which of the following statements about e-distributors is not true?

• A)E-distributors make money by charging a mark-up on products they distribute.
• B)E-distributors usually operate "private" markets.
• C)E-distributors operate in horizontal markets.
• D)E-distributor prices are usually fixed.

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Definitions:

Large Stock Dividend

A large stock dividend is a distribution of shares to existing shareholders at no additional cost, usually in proportion to their current holdings, often used to conserve cash while still rewarding shareholders.

Capitalization

The process of recording expenditure as an asset on the balance sheet rather than an expense, which is then amortized or depreciated over time.

Market Value

The existing market price for buying or selling an asset or service.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to shareholders in cash.