Which of the Following Is an Example of a Natural

question 280

Multiple Choice

Which of the following is an example of a natural monopoly?

• A) the Pittsburgh Penguins hockey team, a National Hockey League team
• B) Ford Motors, the large automobile producing company
• C) Florida Power and Light, an electric utility in Florida
• D) Sony, the Japanese producer of the Playstation III
• E) JCPenney, the large department store chain

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Definitions:

Credit Sales

Sales for which payment is not received immediately, but the buyer is extended credit to pay at a later date, affecting a company's cash flow and revenue recognition.

COGS

Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Effective Annual Interest Rate

The actual return on an investment or the real cost of a loan, accounting for the compounding of interest over a year.

Line of Credit

A financial arrangement providing the borrower the right to draw funds up to a specified limit at any time within a fixed period.