Which of the Following Statements Is True About the Internet

question 24

Multiple Choice

Which of the following statements is true about the Internet?

• A) The Internet further increases the advantage of rich economies over the poor ones.
• B) The Internet increases market transaction costs.
• C) The Internet allows for innovative services but at a relatively higher cost.
• D) The Internet enables smaller firms in emerging economies to sell into a global market.
• E) The Internet decreases the economies of scale from vertical integration.

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Definitions:

Efficient Markets Hypothesis

The Efficient Markets Hypothesis (EMH) posits that all known information is already reflected in stock prices, making it impossible to consistently achieve higher returns through stock market predictions.

Ex-Dividend Date

The specific date on which a stock is set to go "ex-dividend," meaning that shareholders of record as of that date will be entitled to receive the declared dividend.

Declaration Date

The specific date on which a company announces its next dividend payment, detailing the amount and when it will be paid.

Date of Record

The specified date when a company determines the owners of its stock to be eligible for a forthcoming dividend or corporate action.