Andy Dungy Owns a Company That Makes IPod and IPhone

question 21

Multiple Choice

Andy Dungy owns a company that makes iPod and iPhone accessories. He is trying to increase his sales, primarily because he knows that increasing production lowers the average cost of each unit produced. The reason for growth illustrated in this example is:

• A) economies of scope
• B) market leadership
• C) influence, power, and survivability
• D) need to accommodate the growth of key customers
• E) economies of scale

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Definitions:

Issuer

The entity that issues or distributes a financial instrument, such as a company issuing stocks or bonds.

Sarbanes-Oxley Act

A U.S. law established to protect investors by implementing stricter corporate governance and accounting standards.

Statute Of Limitations

The time limit within which legal action must be initiated, after which claims are no longer valid.

Section 11

A provision of the Securities Act of 1933 that imposes liability on issuers for giving false or misleading information within registration statements.