Stella Corp

question 104

Multiple Choice

Stella Corp. has the following liabilities: $30,000 salaries payable, $70,000 accounts payable, $180,000 notes payable (to be made in 10 equal annual payments) , and warranty payable $22,000 (all of Stella's products come with a 90-day manufacturer warranty) . The total current liabilities is:

• A)$100,000
• B)$122,000
• C)$140,000
• D)$302,000

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Definitions:

Herfindahl-Hirschman Index

An index used to assess the concentration of market power to determine the degree of competition in a sector.

Squared Market Shares

A measure used in economics to assess the level of market concentration by squaring the market share percentages of each firm within the industry and then summing them.

Concentration

The degree of market power held by a few companies within an industry, often measured using indices like the HHI.

Economies of Scale

The reduction in per-unit cost as the volume of production increases, due to factors like specialization and bulk purchasing.