Why Do the Regulated Companies Oppose Deregulation

question 1

Multiple Choice

Why do the regulated companies oppose deregulation?

• A)They are thrown out of the market.
• B)They are deprived of their rights to continue business.
• C)They are denied every kind of support from the government.
• D)They would incur losses on account of increased competition.
• E)They would become unpopular as no longer they would be controlled by the government.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Total Revenue

The total amount of money generated by a company from its business activities, primarily through the sale of goods and services, before any expenses are deducted.

Seasonal Inventory

Stock that is held in anticipation of seasonal peaks in demand, ensuring that a business can meet customer needs during specific times of the year.

Cycle Inventory

Cycle inventory refers to the quantity of goods a company holds to meet average demand during a specific period, part of the inventory management to balance supply and demand.