Which of the Following Statements Is NOT True Regarding DeBeers

question 40

Multiple Choice

Which of the following statements is NOT true regarding DeBeers' rise to monopoly power in the diamond market?

• A)DeBeers produces about 40 percent of the world's raw diamonds and controls another 30 percent.
• B)DeBeers achieved dominance in this market by gaining control of South Africa's Kimberley "pipe," the world's largest source in the late nineteenth century.
• C)DeBeers carefully limited the amount of diamonds it released into the market.
• D)DeBeers did not worry about diamonds being discovered elsewhere because it already had full control of the industry in South Africa.

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Definitions:

Unexpired Insurance

The portion of paid insurance premiums that is applicable to future periods, representing coverage that has not yet been used or expired.

Accrued Asset

An asset that represents revenues or incomes that have been earned but not yet received in cash or recorded.

Fiscal Period

A specific time period for which a business conducts financial accounting and reporting, often a year, split into quarters or months.

Accrued Expense

Expenses that have been incurred but not yet paid, recognized in the period they occur rather than when payment is made.