Which of the Following Is True About the Impact of Global

question 63

Multiple Choice

Which of the following is true about the impact of global competition on the business activities in the marketplace?

• A) It has shifted the focus in the marketplace from a consumer's market to a seller's market.
• B) It has increased product life cycles.
• C) It has put more power in the hands of the customer.
• D) It has reduced the competitive spirit of most businesses in a marketplace.
• E) It has limited the choices of the consumers.

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Definitions:

Risky Asset

An asset that carries a significant degree of risk of losing value, but also offers a potential for higher returns compared to safer investments.

Risk-Free Asset

An asset which is assumed to provide a guaranteed return with negligible risk of financial loss, often considered to be short-term government securities.

Capital Allocation Line

A graph that shows the risk-return trade-off of investable assets, indicating the most efficient portfolio possible given a certain level of risk.

Standard Deviation

Standard deviation quantifies the variation or spread of a set of numbers from its mean, highlighting the volatility or risk associated with a financial instrument or investment.