Unfair Competitive Advantages Occur When

question 40

Multiple Choice

Unfair competitive advantages occur when:

• A)one competitor has an advantage others cannot purchase.
• B)market middlemen are displaced.
• C)information is equally distributed and transaction costs are low.
• D)firms are able to gather monopoly profits.

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Definitions:

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.

Cash

Money in the form of coins or banknotes, especially that held by a person or business.

Stock Investments

Financial assets referring to shares purchased in other companies intended for income generation or capital gains.

Cost Method

An investment accounting approach where the investment is recorded at cost and adjusted only for dividends received, not market value changes.